Australia's corporate tax change keeps pressure on upcoming budget

Australia’s intention to reduce the corporate tax rate from 30% to 28% by 2014 puts pressure on the upcoming Budget to ensure New Zealand stays in close range.

Michael Barnett, head of the Auckland Chamber of Commerce, was commenting on suggestions that the Australian tax cut announced yesterday was unlikely to change anything for New Zealand’s May 28 Budget.

“That may be so, but our long-term strategy to match Australia’s overall growth and living standard performance by 2025 puts on-going pressure on the Budget for tax reform that supports businesses lifting growth and exporting.

“To be competitive with Australia long-term, we need a trans-Tasman tax system that is closely aligned,” said Mr Barnett.