Prime Minister Malcolm Turnbull has rejected suggestions Australia’s big four banks should not be part of the government’s proposed company tax cuts.
The Australian has reported several Coalition MPs were questioning why the centerpiece of the government’s economic vision should include multibillion dollar banks.
“The company tax rate has really got to go across all corporations,” Mr Turnbull said in Queenstown.
“Distinguishing between one section and another is not a practical measure.”
Mr Turnbull said he wasn’t aware of any other country in the world that would exclude banks from tax cuts.
Under the government’s plan, the tax rate would be progressively lowered to 25 per cent for businesses.
It’s intended only to apply to small to medium businesses with an annual turnover of up to $10 million, but is designed so there will be no threshold limit by 2023-24.
The opposition has been opposed to the government’s plan since it was first announced, saying it is simply a tax cut for banks that didn’t need it.
Labor has instead called for a Royal Commission into the practices of banks like the Commonwealth, ANZ, NAB and Westpac.
“I can understand concern about banking practices and of course we’re cracking down on those,” Mr Turnbull said.
“We are setting up a one-stop shop ombudsman that will be able to promptly and fairly settle disputes between customers… and banks.”
