Businesses bemoan lack of corporate tax cuts

The government's decision not to enforce a business tax cut as part of its Budget plans has not gone down well among Australian companies.

A lot of organisations feel aggrieved that a one per cent corporate tax reduction – which had previously been promised by the authorities – did not materialise.

With banks still being cautious about who they offer business loans to, some enterprises are finding it hard to stay afloat at the moment and a tax drop would have been a timely boost.

According to the Commonwealth Bank, keeping the rate as it is will net the government $4.6 billion over the five years to 2015-16.

However, CommSec chief economist Savanth Sebastian believes the issue will have to be addressed in the future, as Australia's business tax rate is higher than many other developed countries.

"The tax rate must remain under consideration for Australia to maintain its competitiveness with other nations," Mr Sebastian remarked.

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