Second wave of business tax cuts

canberra, parliament house, politics, governmentThe Turnbull government will introduce the second part of its corporate tax cut plan to parliament on Thursday.

Parliament has already passed a bill to cut tax for businesses with an annual turnover of less than $50 million, which will gradually take the rate from 30 per cent to 25 per cent for the 2026/27 tax year.

The latest bill will extend the cut to businesses with more than $50 million turnover, including big multinational miners and banks.

The government argues the cut is needed to allow businesses to grow and take on more staff, as well as make Australia internationally competitive as countries such as the US and UK cut their rates.

Labor is expected to oppose the bill, arguing the government needs the money to pay for schools, universities and health care as well as balance the budget.

The government will also bring to parliament on Thursday a bill to deliver what’s been described as Gonski 2.0 – a new needs-based, sector-blind funding model for government and non-government schools.

Labor says the plan effectively cuts $22 billion from school funding and could lead to some Catholic schools raising their fees or cutting staff.

As well, changes to university fees and how students debts are paid back will be introduced to parliament in a bill the government says will provide a more sustainable and transparent system.

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