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Labor's Australian Investment Guarantee gains support from key business group



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CHRIS BOWEN MP SHADOW TREASURER

ACTING SHADOW MINISTER FOR SMALL BUSINESS AND FINANCIAL SERVICES MEMBER FOR MCMAHON

LABOR’S AUSTRALIAN INVESTMENT GUARANTEE GAINS SUPPORT FROM KEY BUSINESS GROUP

As time passes by more and more academics and business groups are coming out in support of Labor’s Australian Investment Guarantee.

In its pre-Budget submission yesterday the Australian Chamber of Commerce and Industry called for more incentives for businesses to invest, specifically arguing “the government should adopt the Opposition’s proposed enhancements to accelerated depreciation”.

This is not surprising given that Labor’s generous Investment Guarantee allows all businesses to immediate write off of 20 per cent of new investments.

This move by ACCI follows work undertaken for the Melbourne Economic Forum where modelling by Janine Dixon showed that compared to a company tax cut, an investment subsidy is actually up “ three times more effective as a stimulus to investment”.

The Government’s company will see much of the $80 billion company tax cut go offshore and will lead to a fall in real incomes of up to $2000 per person. Meanwhile, Labor’s Investment guarantee will see Australian living standards rise, not fall.

With their budget strategy in tatters, the Turnbull Government would do well to drop its $80 billion big business tax cut and instead opt for Labor’s targeted, funded and affordable Investment Guarantee.

Only Labor’s Australian Investment Guarantee only provides tax relief to businesses who invest in Australia without the windfall gain to big businesses and multinationals.

FRIDAY, 4 MAY 2018

MEDIA CONTACT - JAMES CULLEN 0409 719 879

Authorised by Noah Carroll ALP Canberra