Australian Greens Leader Bob Brown released figures today showing the big four banks alone will get a windfall of more than $4 billion from the proposed corporate tax cut associated with the Gillard Government’s diminishing mining tax.
“The Greens will be proposing to the Treasurer that the banks do not get the cut in corporate tax to 29%. Instead, small businesses should be supported with a 5% tax cut to 25%. While many large companies are foreign-owned, small businesses – which employ more than half of Australia’s workforce – are largely Australian owned,” Senator Brown said in Hobart.
“With the growing gap between the rich and poor, and growing domestic and global anxiety about corporate greed, now is precisely the wrong time to be gifting the banks a $4 billion tax break. The Australian banking sector has been strongly supported through the global financial crisis and it’s now time for the banks to give something back or at least not soak up revenue that could provide much-needed services.”
“Australia’s banking system is the strongest in the world and does not require further assistance. The big four banks made over $20 billion in profits last year and are expecting even greater profits this year. Their four CEOs are raking in salaries between $7 and $16 million. Small businesses are not finding it so easy.”
“The Greens are not alone in proposing a smaller tax impost on small businesses. There are many countries, including Canada and the UK, which do so.”
“If the big banks were granted the 1% tax cut being proposed by the Government it would cost the budget $4 billion over the next ten years, robbing the public purse of revenue that could be used for national dental care, clean energy, tertiary education or public transport.”
“So I am proposing to both the Government and Opposition that they back the Greens’ proposed amendment to the mining tax package to remove the 1% corporate tax break and, instead, give Australia’s struggling small business sector a 5% tax cut: the outcome will be a cost neutral boost to job-rich local business enterprises.”
