The Printing Industries Association of Australia (PIAA) is disappointed that the Turnbull Government’s proposed tax cuts have been postponed after failing to secure the support of the Senate.
The Coalition has said it will make company tax cuts an election issue after it has failed to pass. Independent South Australian Senator Tim Storer and Senator Derryn Hinch of Victoria were not convinced to support the bill. The PIAA says it will be campaigning for Hinch and Storer to back the proposed tax relief legislation, which would see corporate tax fall from 30 to 25 per cent.
Andrew Macaulay, CEO of PIAA says, “Taxing profits is a tax on jobs and a tax on economic growth. Small and big business account for 86% of all jobs in Australia, we need support for business to encourage job creation.”
“The print and packaging sector would employ more people if government impositions are removed.
“We have long been campaigning for the removal of state-based payroll tax, a tax on employing people. The cutting of corporate company tax is consistent with this policy position. Businesses should not be penalised unduly by Government for doing well.
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Andrew Macaulay, CEO of PIAA recently has met with Shadow Treasurer Chris Bowen, minister for Environment and Energy Josh Frydenberg and Minister Matt Canavan to discuss tax cuts for print and packaging along with energy pricing.
The PIAA says both Victoria and South Australia need more local jobs and more employment.
Paul Mitchell, industrial relations manager with the PIAA says, “I am based in Victoria and I get a lot of feedback from our members about how hard it is to do business in Australia. We have had positive feedback on our lobbying to abolish the payroll tax, businesses should not be taxed more for hiring more people.
“The corporate tax rate is too high and printers are worried about their competitors overseas which have much it lower.”
“Businesses in South Australia are also facing escalating energy prices and in Victoria, energy prices have gone up 200 per cent.
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“Any breaks for businesses will be an incentive to hire more people. The problem with corporate tax is that it comes out of profit. It would only be a modest change, to go from 30 to 25 per cent and it would be over 10 years. We as an industry association say we should encourage businesses to do well, not punish them.
“We will be communicating with Senators Hinch and Storer about tax cuts for the industry. They are critical votes and we will be supporting efforts to get them on board.”
While Australia has a corporate tax rate that remains at 30 per cent, New Zealand has a rate of 28 per cent and Singapore is at 17 per cent.
Macaulay says, “Overall, we must remain competitive in our region on tax or else print and packaging jobs may go offshore.”
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