Prime Minister Malcolm Turnbull used a visit to an Illawarra-based manufacturer of military-grade armoured steel to continue his battle to get his company tax cut over the line.
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Mr Turnbull took a tour of Bisalloy Steel at Unanderra, the firm which is supplying armoured steel for the defence force’s new reconnaissance vehicle.
To be manufactured in Queensland by Rheinmetall Defence Australia, the $5.2 billion contract to build 211 vehicles will seemore than 2000 tonnes of BlueScope steel turned into armoured plate at Unanderra.
“It’s the biggest single contract ever commissioned by the Australian Army,” Mr Turnbull said.
“This is steel to keep our soldiers safe, to ensure that they can do their job and come home safely.
“This steel is being exported to the most demanding customers in the world, in Europe and the United States, Israel – this is the best steel.”
It was Mr Turnbull’s second visit to the Illawarra in as many weeks.
On Monday last week, Mr Turnbull toured BlueScope’s Port Kembla steelworks to announce Australia would be exempt from the United States steel tariff.
On Thursday, standing with Bisalloy CEO Greg Albert, Rheinmetall Australia’s managing director Gary Stewart, and Gilmore MP Ann Sudmalis, the Prime Minister spruiked his government’s planned corporate tax cut.
The cut would reduce taxes from 30 cents to 25 cents in the dollar for all companies by 2026.
“Greg is competing in the most competitive market in the world with the most demanding customers,” Mr Turnbull said.
“All their customers can buy their steel from the four corners of the world, so he has to have the best product, the most competitive product.
“We need to ensure that he is best able to compete. Right now in the Senate we’re debating our company tax legislation, which will reduce the tax on Australian businesses down to a competitive rate – over time down to 25 per cent.
“The US is already at 21 – we are not competitive at 30.”
Mr Albert said he would use the money saved from the tax cuts to improve the Unanderra plant, but Mr Turnbull said his government’s measures would see wages rise.
“All the evidence indicates that they will,” he said.
“There is no question that you will see a rise in wages with a reduction in company tax. That’s always been the case.
“It’s not a charitable exercise. This is hard-headed economics – how do we set this business up to be more competitive, more successful, more productive?”
Glen Humphries
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
