A Tony Abbott led Government will reduce the rate of company tax to 28.5 per cent from July 1, 2013 the Liberal Party have announced today.
Abbott claims that the $2.55 billion costing will be funded from savings already announced by the Coalition. The current company tax rate is 30 per cent.
“If there are lower taxes on companies we will have more successful companies, we will have a more prosperous economy, and that is good for every single Australian,” Abbott said.
During the past few days Treasurer Wayne Swann has accused Abbott of introducing a Woolworths/Coles Tax to fund his parental leave initiatives. Swan said that the cost of the program funded by an increase in Company Tax would hurt Australians due to a big new Liberal party Company tax.
Mr Abbott said today that this is not correct and that the Coalition would always be the low-tax party.