The federal government’s proposed cut to the corporations tax would cost taxpayers $3.


1 billion, the Australian Greens say.

Treasury documents, released by the Greens on Sunday, showed a cut in the corporations tax rate from 30 to 29 per cent would cost the federal budget $3.1 billion in the four years to 2014/15.

Greens’ MP Adam Bandt said the company tax reduction should not go ahead and this would stop some of the speculated cuts in the budget.

“The government is giving every sign of taking the stick to everyday Australians and asking them to make up an unfair share of the deficit,” Mr Bandt told the Ten Network on Sunday.

“I don’t think now is the time, for example, to be saying that we’ll give a tax cut to the country’s biggest corporations.”

Treasurer Wayne Swan has said the government will make cuts to the budget, to be handed down on May 10.

The projected deficit for 2010/11 of $41.5 billion is expected to be worse following a drop in revenue from natural disasters, here and overseas.

But Mr Swan has said the government remains committed to its timetable of an underlying cash surplus in 2012/13.

Mr Bandt said the cut in the company tax rate was another example of the government caving in to the big firms.

“In addition to the mining tax backdown of about $10 billion a year, the government is now planning to give another $1.5 billion back to the country’s biggest corporations at the same time of crying poor,” he said.

As part of its economic measures, the Greens propose the corporations tax to rise from 30 to 33 per cent.