Abm predicts $1bn investment in Australia as the government unveils new tax regime
- by admin
Australia’s top financial services company has predicted the Federal Government will announce tax cuts for large companies in its next budget, in a rare public sign of support for the country’s big business community.
The announcement is expected to be made on Friday, and could see an increase in the corporate tax rate from 10 per cent to 12 per cent.
The Abm Group, the world’s largest publicly listed financial services provider, is one of the worlds biggest shareholders in the Australian company Commonwealth Bank, the second largest in Australia.
Abm shares were up 5.9 per cent on Thursday, the highest in nearly three weeks, as it warned the Coalition would be “in the driver’s seat” on tax policy if it wins power in September.
“The Treasurer is going to announce tax increases and we’re all watching the budget to see how that will play out,” Abm managing director Robyn Waggon said.
“If he’s doing the right thing, it means Abm is going into the next financial year with the confidence of investors.”
“We are going to have to be very aggressive in the next three months on the tax front, and I think the Treasurer will be the right person to be the catalyst.”
The Abt Group, which has about 2.5 million customers in Australia, said it was expecting the budget announcement to increase the tax rate on its earnings by 0.5 per cent, or $1.5 billion.
“We don’t think this is a coincidence, and we think it’s a signal that the Treasurer is very serious about tax reform,” Mr Waggen said.
“The more aggressive the tax changes are the better off we’ll be.”
Mr Waggan said the Abm group would be monitoring the announcement closely, as the firm was also expecting a number of other large-scale tax reforms to be announced in the coming months.
“Abm is confident that we will be able to be a significant shareholder in Commonwealth Bank,” Mr Gattis said.
Australia’s top financial services company has predicted the Federal Government will announce tax cuts for large companies in its next…