Company tax cut a pain for most Australians

No wonder Australians feel they are not getting a fair go from the Turnbull Government.

To make matters worse recent annual disclosure of taxation payments by the 2000 largest Australian companies revealed 732 or about 36 per cent of these companies paid no tax at all in Australia over 2015-16. This is despite the fact they report generous revenue from their Australian operations. One such company recorded over $16 billion in revenue from their Australian operations, yet this organisation is able to pay no tax at all in Australia.

Because Australia's tax rules give shareholders franking credits for company tax already paid by the company the greatest beneficiaries of Turnbull's corporate tax cut will be foreigners.

Australian shareholders pay a low effective rate of tax on their dividends because of the credit they receive for tax already paid by the company on their profits. For them the corporate tax cut brings no significant benefit. But foreign shareholders who are not eligible for the franking credit get the full benefit of the tax cut through a significant lowering of their effective rate of tax on their dividends.

Foreigners are the real winners from Turnbull's corporate tax cut.

From the first Abbott Government budget, the budget deficit has grown to $23.6 billion. To cut the deficit the Abbott and Turnbull governments have cut funding for hospitals, schools, university and infrastructure. This is making life harder for Australians as well as restricting our future productivity and economic growth.

But the great injustice of the Coalition Government's economic policies is the fact that they are putting more money in the pockets of big business by cutting corporate taxes.

So families, workers, pensioners, students are paying for the tax cuts to big business.

Is it any wonder a recent poll indicated 46 per cent disapproved of the tax cut for medium and large businesses and only 24 per cent approved. It's an ideologically driven policy from an out-of-touch government.

So while Bob struggles through his hip pain, and Australians feel the pinch, they will be pleased to know that Turnbull is giving Australia's biggest companies a tax break rather than properly funding our hospitals – and giving Australians like Bob the health care they need.