Company tax rate changes to create two-tier system and disincentive for growth

Changes to corporate tax rates will see companies actively seek to remain below a $50 million threshold, creating a two-tiered system and a disincentive for business growth, business leaders warn.

Last week Prime Minister Scott Morrison said the Coalition would move to fast-track tax relief for more than 3 million businesses, bringing in a 25 per cent tax rate for firms below the threshold by 2021-22 – five years ahead of current plans.