Business won't restructure for cut: Morrison

Treasurer Scott Morrison concedes returning the budget to balance in 2021 as projected

Treasurer Scott Morrison concedes returning the budget to balance in 2021 as projected"remains a difficult challenge

"We remain absolutely committed to this plan because this plan is what is going to attract investment". He has called on Labor to clarify whether it will keep the tax cuts and how it will make up a $4.3bn shortfall in its costings caused by the passage of the deal.

With a decision on the cut on hold until next month, ACTU president Ged Kearney said unions would push for the tax cut to be axed if Labor wins the next poll.

The tax rate will fall over time to 27.5 per cent, at a cost to the budget of $5.2 billion over the next four years, and eventually to 25 per cent over the medium term.

It seems increasingly likely that the government will be making changes to capital gains tax as part of a housing affordability package to be announced in the budget in mid-May. "That is a very good outcome for Australian small and medium-sized businesses".

Young people who sign up might find themselves hit with an unexpected tax bill, as the government waits for federal parliament to approve the program's details. "We hope this will build the momentum to get the whole package through".

He said Labor will decide whether to roll back the tax cuts before the next election, adding it would consider the impact on Australia's Triple A credit rating which he said was a "bigger concern to a lot of businesses than a company tax cut".

Mr Bowen said Labor would "take account of what the government has been able to legislate" and arrive at a position.

"Will we see the budget deficit blow-out further under this treasurer's watch or will we see further harsh cuts on middle-income earners and tax rises on working Australians?"

"Large business representatives, there is a strong need for them to address the broader collective - and I stress "collective" - reputation issues that large businesses have with the Australian public", Mr Morrison said in a speech to a financial conference in Sydney. "If the Senate is in the position to look at this before the next election, then we would be more than happy to bring those things forward".

Morrison said the amended cuts would boost growth by one percent over the next 10 years.

Mr Morrison also attacked big business for not doing enough to support the government's company tax cut plan.

Business Council of Australia chief executive Jennifer Westacott said the tax cuts were historic but warned that a two-tier tax system could be problematic as businesses could start planning for tax purposes, not growth. "And we'll continue to argue for that".

The Turnbull government's $24 billion company tax cut will boost the economy by less than 0.2 per cent when fully implemented, according to a preliminary analysis by the Grattan Institute.

Leigh told Sky that Labor's productivity plan was to invest in education, infrastructure and broadband.

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