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Tax cuts will help job creation: Morisson

AAP logoAAP 31/08/2016

Treasurer Scott Morrison has introduced to parliament his 10-year plan to cut the company tax rate to 25 per cent.

The legislation aims to incrementally cut the corporate tax rate from 30 per cent over the next decade and will immediately reduce the rate to 27.5 per cent for all businesses with an annual turnover of up to $10 million.

"These actions contained in this bill will provide the encouragement needed for Australian businesses to grow and create jobs," Mr Morrison told parliament on Thursday.

Separately, Mr Morrison introduced legislation to increase the upper limit for the middle-income tax bracket from $80,000 to $87,000.

This will help those on average wages remain in that bracket and prevent about 500,000 taxpayers from facing the second highest tax rate of 37 per cent through wage inflation, otherwise known as bracket creep.

"It is crucial that we have a modern tax system that allows people to work more, take more risks, without facing the pressure of a growing tax burden that suffocates hard work innovation and enterprise," Mr Morrison said.

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