PM the big winner from tax plan
THE political brawl over business tax cuts gets personal this week with Labor nominating Malcolm Turnbull as a big winner from his own policy.
The Prime Minister has interests in at least 15 investment funds involving 18 companies with turnovers above $50 million, Labor calculates.
That would give him a substantial windfall should the Government's full range of corporate tax relief be passed.
All the investments have been publicly declared by Mr Turnbull.
The Government is expected respond by examining the potential benefit to the superannuation savings of Opposition Leader Bill Shorten and other shadow ministers.
The Government wants a Senate vote on the corporate tax package to follow the expected passage of its personal tax cuts after Senate approval last week.
Finance Minister Mathias Cormann has insisted the Government will be as unrelenting on passing the full business tax plan as it was with income tax - all or nothing.
"Our intention is to deal with it this week, our intention is to secure the necessary support through the Senate, in order to legislate those business tax cuts in full," Senator Cormann told ABC television Sunday.
"The same as we said we would not be splitting the personal income tax bills … we will not be splitting the company tax cut plan from here."
Opposition finance spokesman Jim Chalmers said Labor would press ahead with its competing package.
"I'm saying that there's a better way to give tax cuts to business which will ensure that money is invested here in Australia," he told Sky News yesterday.
"And that's why we've got an alternative which is called the Australian Investment Guarantee, which will get much more bang for our buck when it comes to growing the economy."
The targeting of Mr Turnbull on the tax policy benefits follows increasingly nasty and personal exchanges in Parliament last week and the tactical battle over tax restructuring.
The focus on Mr Turnbull's wealth intensifies the battle and Nationals MP John Williams today said it was appalling.
"I know left wingers (in Parliament) with three houses. How's that for irony," he told ABC Radio.
A Labor video featuring the Prime Minister's tells viewers: "Why is former banker Malcolm Turnbull so keen to give big business a tax cut instead of properly funding our schools and hospitals? Who exactly is he looking after?"
Under the Government tax plan the cuts from 30 per cent to 25 per cent would be in stages - the first down to 27.5 per cent - depending on turnover:
• $25 million in the 2017-18 income year;
• $50 million in the 2018-19 income year;
• $100 million in the 2019-20 income year;
• $250 million in the 2020-21 income year;
• $500 million in the 2021-22 income year; and
• $1 billion in the 2022-23 income year.
In the 2024-25 income year the company tax rate will be reduced to 27 per cent and then be reduced progressively by one percentage point per year until it reaches 25 per cent in the 2026-27 income year.