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 Pass the buck: voters call for companies to pay bigger share 

Pass the buck: voters call for companies to pay bigger share

12 Mar, 2010 05:52 AM
TONY ABBOTT might be facing derision from business lobbies over his proposed tax increase, but the public appears to be less wary - three-quarters of Australians believe companies should pay a greater proportion of tax.

A survey of 1500 people found a majority thought the current company tax rate of 30 per cent was about right. But a clear majority also thought that more of the burden should fall on companies instead of individuals, the survey commissioned by Catalyst Australia found.

The government has signalled it is prepared to lower the company tax rate. The Finance Minister, Lindsay Tanner, this week said the international trend was for company taxes to fall.

''The implications of having company tax set at a particular level will vary according to wider global conditions but inevitably that's a major consideration for the government,'' he said.

In the Catalyst poll, 43 per cent of those surveyed thought the tax rate was about right, 29 per cent thought it was too high, and 15 per cent thought it was too low. The survey, conducted by Auspoll, asked respondents if they agreed with the amount of deductions companies could claim. It stated that about 50 per cent of companies paid less than 5 per cent of income in tax.

Half the respondents thought there should be fewer concessions, a quarter agreed with current conditions, and 76 per cent said companies should pay a larger share of the tax bill.

A professor of business law and taxation at Monash University, Rick Krever, said a lower tax rate would not deter investment. Companies would come to Australia because they needed its mineral resources and were attracted to its stable government, workforce and infrastructure. ''The question is, do companies need all these concessions,'' he said.

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ARTICLES
MULTIMEDIA
11 March, 2010
POLL
Q: Should the Federal Government step in and overhaul the corporate structure of Australian Wool Innovation?

Yes
(42.4%)

No
(43.3%)

Not yet
(14.3%)

Total Votes: 413
Poll Date: 07 March, 2010

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