POLITICS

Turnbull Says 'All Corporations' Should Get Company Tax Cut, Even Banks

The PM will not deny the banks tax relief.

18/02/2017 9:50 AM AEDT | Updated 18/02/2017 10:59 AM AEDT
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The big banks will enjoy the coalition's proposed cuts to company tax, the PM says.

Prime Minister Malcolm Turnbull has ruled out calls from within the coalition for the big banks to be carved out of the federal government's planned company tax cuts.

Reports surfaced on Saturday that some within the LNP were pushing Turnbull to exempt the banks from the government's plans to slash the corporate tax rate to 25 per cent.

The reports, in NewsCorp Australia media, claimed that some backbenchers wanted to drop the major banks from the $48.7 billion company tax cut policy. The rationale for denying the cuts to the banks is said to be because the company tax regime does not impact the banks as much as many other businesses.

Speaking in New Zealand, Turnbull said a cut to company tax needed to cover all corporate entities, irrespective of the sector they operated in.

"A company tax rate has to go across all corporations," Turnbull said.

"Distinguishing between one sector and another is not a practical measure. I'm not aware of that ever being done in another jurisdiction."

The Turnbull administration wants to reduce the top corporate tax rate from 30 to 25 per cent by 2026.

The Prime Minister's comments come days after the Commonwealth Bank reported a record half-yearly profit of $4.9 billion.

Turnbull said he understood the public's concern about banking practices, before reiterating his opposition to a royal commission into the sector.

Labor has previously called on the Turnbull Government to establish a royal commission after a number of scandals in the banking industry.

"I can understand concerns about banking practices and, of course, we are cracking down on those," Turnbull said.

"We're taking real action to ensure the banks treat their customers better and we're taking action now.

"The problem with the royal commission is that it will not actually result in any action. You would have years and years of very expensive inquiry and then you'd have a report with some recommendations."

Turnbull is in Queenstown for meetings with New Zealand Prime Minister Bill English. The pair have so far focused on immigration policy as they move ahead with Trans-Pacific Partnership negotiations.



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