I must admit I don't agree with everything Scott Morrison says, in particular the butchering of the Superannuation Guarantee where he has reduced the amount that can be concessionally contributed to super for all working Australian's to only $25,000. That is ridiculous reform! However in my role at 3aw I was lucky enough to meet with him and chat to him. And whilst I did not have long with him I did have the chance to give him an idea.
Slash the company tax rate now. The proposal to slash the company tax rate to 25% in 10 years is far too long. 10 years ago was the start of the GFC, the Melbourne Tunnel was not completed, Wesfarmers bought Coles and Kevin Rudd admitted he went to a strip club in New York. It seems like a life time ago. So propose for the financial year 2018/19 to cut to 25%, then for 19/20 to 20% and follow the proposed Trump rate cut to 15% to 20/21.
In my opinion this will:
1) Increase the incentive for businesses to invest
2) We pay too much tax compared to many other countries so would be more competitive
3) Contribute to wages growth which would contribute to productivity growth
The negative, there is a cost to the budget, no one is doubting that, but it could allow an increase in the GST and could contribute to a growing economy, growing inflation and better prosperity for Australia.
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