• BHP chief Andrew Mackenzie says tax cuts will create 'more well-paid jobs'
BHP chief Andrew Mackenzie says tax cuts will create 'more well-paid jobs'
23 Feb, 2018, 1 Comment

Summary: BHP boss Andrew Mackenzie said the mining giant will bring new investment and higher-paying jobs to Australia if the corporate rate was lower, restating calls from business leaders for Parliament to pass the tax cuts.....

Mr Mackenzie said he expected to see benefits soon from paying lower tax rates in the US, as the company reported a $2.5 billion profit for the six months to December.

He told ABC radio on Thursday BHP would invest more in the US as a result of the tax cuts, and expected similar benefits in Australia if the corporate rate was lowered to 25 per cent for all companies by 2026-27.

"The reality is when we decide what we are going to do with the excess cash that we make as a business, some of it we will return to our shareholders in the form of dividends, and the other part, if our balance sheet is strong, we will invest," he said.

"That competition for investment is a global competition between possibilities in Australia, possibilities in the US and when we have lower taxes in some parts of the world compared to others, all other things being equal, we will choose that place in preference to that.

"We have plenty of opportunities to invest in Australia, we will pursue many of them but we will pursue more if the tax rate were lower."

Acting Prime Minister Mathias Cormann said on Wednesday he would use Malcolm Turnbull's absence to make the case for company tax cuts, ahead of the Turnbull government's plans to retest the Senate's resistance to lowering rates in coming weeks.

The International Monetary Fund made fresh calls on Wednesday for an even more ambitious tax reform plan, which it said would boost productivity and national competitiveness.

The government believes some 4500 businesses stand to benefit from the plan.

Mr Mackenzie said he welcomed the debate in Australia as an opportunity for business and political leaders to consider the country's ability to attract new investment.

"I think the benefits are very simple. If you lay in lots of capital for the future base of the company, you're putting in the latest technology, the opportunity to be more productive, and the opportunity to employ more people with some of the skills they're obviously learning at this moment in time.

"I would say the benefits are across the board. You'll see more investment and more jobs and those jobs will be higher paying jobs."

He said a lower corporate tax rate would see new domestic investment in big and small projects.

"In the medium to long term you will see more investment going into the economy, more jobs, more businesses being in Australia who will pay more taxes in the future.

"In my view, tax cuts are a very important way that the government can increase investment in the future capital base of the country and therefore its competitiveness and its ability to develop more well-paid jobs for Australians in the future."


  • MyPassion

    David Kent
    23 Feb, 2018

    What a bad joke. What are your investors going to say about these well paid jobs. You would be more believable if you dressed in a clown suit.
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