AMP Chairman David Murray says it’s “regrettable” the federal government’s corporate tax cuts have been scrapped, after they failed to pass the Senate on Wednesday.

The plan would have significantly reduced the tax burden on businesses worth over $50 million by cutting the tax rate from 30 per cent to 25 per cent.

The policy will not be taken to the next election, as the government concedes it doesn’t have bipartisan support.

Mr Murray tells Ross Greenwood the fact we have “uncompetitive” corporate tax rates is “regrettable”.

“The corporate tax rate is the main driver of investment decisions in the economy. It’s investment that actually props up the business cycle.

“Consumption remains relatively stable through the cycle but it’s movements in investment that affect it most.

“It’s regrettable that we can’t make our rate more internationally competitive.”

Mr Murray says excluding the big banks from corporate tax cuts would be “naive” because the cost would be felt by consumers.

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AMP’s Chairman has also commented on the appointment of the company’s new chief executive Francesco De Ferrari who will take up the job in December.

When asked whether Mr De Farrari’s “golden hello” of $17.7 million will ruffle the feathers of shareholders, Mr Murray says they’ll see he can get the job done.

“We can only hope that when they see his credentials and the size of the task they’ll appreciate what he can do for them.”