Planned corporate tax cuts in Australia unveiled in the budget on May 3 are estimated to cost just over A$48bn (US$35.4bn) over the next 10 years.
Australia’s prime minister, Malcolm Turnbull, who confirmed shortly after the budget was unveiled that he will call a general election on July 2, had previously declined to offer a figure both in a television interview and in response to the opposition Labor party.
However, in subsequent Senate estimates, treasury secretary, John Fraser, said the 10-year cost of lifting the small business threshold to A$10m and reducing corporate tax to 25% would be A$48.2bn. The current rate is 30% and reached a record high of 49% back in 1986.
The first stage, from this July, will be a reduction from 30% to 27.5% in the rate for small businesses with annual turnover of less than A$10m, while an uniform rate for all businesses of 25% will be in effect by 2026-27. The policy reflects Turnbull’s belief that offering incentives to innovators is key to Australia’s continuing economic growth.
The success of centrist Emmanuel Macron in the first round dispelled fears of a victory for the far-left candidate Jean-Luc Mélenchon.
However, the region’s mature markets such as China and India are set to benefit most, real estate group CBRE reports.
The latest annual survey by US group Treasury Strategies reports that their priorities are familiar, but treasury is adopting a fresh approach to tackling them.
In its latest report, the International Monetary Fund notes that many governments have eased up on austerity measures.