OECD report finds company tax cuts can benefit all - not just the rich

The federal government will push ahead with stage two of its company tax cuts when parliament resumes next month.

It’s been emboldened by an OECD report that suggests corporate tax relief can benefit all, not just the rich, as Labor has long argued.

Acting Treasurer Kelly O’Dwyer says the report had “rubbished” Labor’s case.

“Labor has no-where to hide on this any more,” she said.

The latest round of corporate cuts would see the rate cut from 30 to 25 percent for companies with a turnover of more than $50 million by 2026.

Without the support of the crossbench in the Senate, the government will need Labor’s support.

But Shadow Treasurer, Chris Bowen, immediately ruled that out.

“Labor has not, and will not, support $65 billion company tax cuts,” Mr Bowen said.

“Australia cannot afford it.”

Labor argues the money should be spent on schools, TAFE, infrastructure, and the NBN.

Economists say the OECD report is right, if companies pass on wage increases or re-invest the savings.

But, if they only pass the dividend on to shareholders, only the “top end of town” benefits.

The government wants to have the tax cuts passed in the autumn parliamentary session.