Abbott’s political parties tax reform stance welcomed by Printing Industries

Opposition leader, Tony Abbott's announcement of a Coalition plan to cut company tax to 28.5 per cent from July 2013 is a definite step in the right direction for print businesses, according to Printing Industries.

Printing Industries CEO, Philip Andersen, said this means that both Julia Gillard and Tony Abbott now have plans for reduced company tax once the budget returns to surplus.

“That is a solid step forward, although the cost relief is a few years away,” he said. “It is not however 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 added that 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.

“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,” he said.

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