Australian Greens Leader Bob Brown has proposed that the company tax rate reduction from 30% to 29% for large companies - associated with the Government's mining tax - be replaced with a 5% cut for small businesses.
"The revenue from the mining tax should be re-focused on tax relief for small business. This will also keep billions of dollars in Australia which might otherwise go as profits offshore," Senator Brown said in Sydney today.
"As the incubator of innovation and one of the largest employer groups in the country, small business is getting real action now from the Greens. The billions earmarked for large companies should instead go towards lowering the tax rate for small business from 30% to 25%," Senator Brown said.
"About half of the workforce is employed by small businesses, compared to 2% in the mining industry, which is the major beneficiary of the Government's proposed corporate tax cut."
"Keeping the tax rate at 30% for large companies will mean around $2 billion available to be targeted to assisting the small business sector which has a higher compliance burden and less political power than the big end of town."
The Greens will promote the idea at the October 4-5 tax forum.