The Coalition has promised it will cut the company tax rate by 1.5 per cent if it wins government.

The Opposition’s pledge, in a pitch to small business, would take the rate to 28.5 per cent, 0.5 per cent lower than what the Government has promised.

Releasing the Coalition’s small business policy today, Opposition Leader Tony Abbott said it was a “win, win” situation for small business.

“We are always going to be the low tax party,” he said.

“As far as the Coalition is concerned companies deserve a tax cut.

“We will give them [companies] a tax cut without a mining tax to pay for it.

“We’ll give them a tax cut without a carbon tax to pay for it. We will ensure that this tax cut is affordable in the longer term.”

Mr Abbott says the cut will cost $2.1 billion a year and will be funded out of Coalition savings already identified.

It will begin in July 2013.

The company tax rate has been an area of debate between the two major parties in recent months after policy decisions taken on both sides.

The Government has promised it would use revenue from its mining tax to fund a 2 per cent cut in the rate, but this was later changed to 1 per cent after the deal was changed.

The Opposition is planning to fund its paid parental leave scheme by imposing a 1.7 per cent levy on the tax rate for some of Australia’s biggest businesses.  (Reprint from Yahoo Finance)