Philip Andersen, CEO of Printing Industries says the move is a solid step forward, however the cost relief is still a few years away and it is not the full measure of the ambitious tax reform that the nation needs. The Henry Tax Review recommended a 25 per cent company tax rate.

Andersen also says that a recent small business survey showed that small businesses rated personal tax reform and company tax reform a high priority as not all small businesses are incorporated.

He says, “Capital gains and payroll tax are also areas in need of integrated reform. Lower company tax helps the economy to be competitive especially in our Asian region, and provides some cost relief that supports jobs.

“It is good to see that the major parties are now focusing on supporting our economy and building its strength.”

Printing Industries was opposed to the Coalition’s proposal to fund its generous paid parental leave scheme by a higher tax on large companies. Although the Coalition has said that its paid parental leave levy is temporary, it’s still not the way to fund community-wide social policy, according to the Association.

Andersen continues, “We also remain opposed to the Government’s plan to increase the superannuation levy on employers by 33 per cent over the next decade. The value of company tax reductions and small business depreciation changes proposed by the Government are outweighed by the cost of higher superannuation from 2015 onwards.

“A far more equitable way for the government to fulfil its objectives in superannuation would be to allow the proposed charge to be implemented as part of a wage trade-off.”

Printing Industries will continue to talk to the major parties and will publish their responses to a range of its members’ concerns.

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