Harbour Bridge for sale

The lobbying organisation, the Business Council of Australia, in a desperate move to try to convince some cross-bench members of the senate to pass the government’s cut to the corporate tax rate have provided the senate with the following commitment:

“Commitment to the Senate

We believe that a reduction in the corporate tax rate, as proposed through the Government’s enterprise tax plan, is urgent and vital to keep Australia competitive.

If the Senate passes this important legislation we, as some of the nation’s largest employers, commit to invest more in Australia which will lead to employing more Australians and therefore stronger wage growth as the tax cut takes effect.”¹

This was signed by

Andrew Mackenzie, CEO, BHP

Catherine Tanna, MD, Energy Australia

Andrew Forrest, Chairman, Fortescue Metals Group Ltd

Brent Eastwood, CEO, JBS Australia Pty Ltd

Tim Reed, CEO, MYOB

Frank Calabria, MD & CEO, Origin Energy Ltd

Alan Joyce, CEO, Qantas Airways Ltd

Rob Scott, MD & CEO, Wesfarmers Ltd

Peter Coleman, MD & CEO, Woodside Energy Ltd

Brad Banducci, CEO & MD, Woolworths Ltd

Grant King, President, Business Council of Australia

Jennifer Westacott, CEO, Business Council of Australia¹

It is hard to imagine anyone as disingenuous as stupendously highly paid CEOs, MDs or Chairmen crying out for tax ‘relief’ for their companies, when those companies paid no corporate tax in the 2015-2016 financial year, while stating in the ‘Commitment’ that they would invest in Australia, which will lead to employing more Australians. From the list above, in 2015-2016 financial year: Energy Australia had total income of $7.75 billion, but paid no corporate tax. JBS Australia had total income of $640 million, but paid no corporate tax. MYOB had total income of $295 million, but paid no corporate tax. Origin Energy had total income of $11.92 billion, but paid no corporate tax. Qantas Airways had total income of $15.75 billion, but paid no corporate tax². How can a company which pays no tax commit to investing more in Australia when the corporate tax rate is lowered so that they pay exactly the same amount of tax?

If you believe these people, let me know, as I have a harbour bridge I’d like to sell you.

Sources

1. https://www.businessinsider.com.au/company-tax-cuts-bca-pledge-is-an-embarrassment-opinion-2018-3
2. https://www.actu.org.au/actu-media/media-releases/2017/732-companies-pay-no-tax-cost-australia-134-billion