Jamie Cunningham

Australian small businesses are being ripped off by paying one of the highest company tax rates in the world, an international business coach says.

While many countries have dramatically cut their corporate tax rates in recent years, the Federal Government continues to force Australian businesses to pay a top corporate tax rate of 30 per cent.

Jamie Cunningham said small to medium sized businesses are also paying way too much compared with their international counterparts, and whoever forms government in May should lower the rate to at least 20 per cent.

“The SME corporate tax rate is Australia has come down, but is still a whopping 27.5 per cent,” Mr Cunningham said.

“While the SME rate could be cut to 25 per by 2021 under a Coalition proposal, that still does not go far enough.

“Australia’s corporate tax rate is too high compared with our competitors and it needs to come down – to at least 20 per cent – and sooner rather than later.

“Our politicians need to remember the major role that small to medium sized businesses play in this country – they employ millions of people and make a significant contribution to the economy.”

As well as advising Australian business operators, Mr Cunningham also has clients in Canada where the company tax rate has been cut to under 20 per cent.

“The UK’s rate is also now under 20 per cent and the US has dropped company tax to 21 per cent.

“Other countries have done it, why not Australia?

“If we want to have a strong economy and be globally competitive, we need to catch up to the rest of the world and lower company tax.”

Mr Cunningham said cutting Australia’s company tax rate would equate to a saving of around $150,000 for a small business with a $10 million turnover. With the extra money, owners could reinvest in their businesses by:

• Reducing Debt: business loans can be a great way to get started, but debt should not be relied upon and should be paid back as quickly as possible
• Boosting growth: expanding into new markets and offering more products or services can lead to new sales and ultimately help increase revenue and profit
• Hiring new staff: recruiting more staff who have the right skills and personality can also help a business grow
• Buying new equipment: updated software, new technology or additional machinery are great ways to improved productivity and processes
• Developing a marketing plan: promoting your business through advertising, social media and public relations can deliver new clients and better opportunities

“Pouring a large sum of money back into a business, instead of just handing it over to the tax office every year, can make a big difference to a business,” Mr Cunningham said.

“This type of investment can take a small or medium sized business to a whole new level.

“But it’s not just a good thing for businesses, it’s good for all us. When businesses grow, so too does the Australia economy. What politician or political party doesn’t want to see that happen?”

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