The total tax burden faced by business, taking into account taxes paid to state and federal governments and collected on their behalf, is poorly understood and significantly greater than many realise. An excessive tax burden, and a tax system that unnecessarily distorts decision making, weighs on competitiveness and business investment in Australia.

In June this year the BCA released a discussion paper titled A Better Tax Return: Reconsidering the Role of Australia’s Tax System.

It called for a rethink of the role tax reform can play in areas of the economy that will boost economic capacity such as workforce participation, infrastructure, education, regulation, competition, trade and innovation.
 
It outlined why the federal government review of the tax system needs to be comprehensive, and in particular must consider the the role of the GST and question whether tax reform really needs to be revenue neutral.

The paper identified ways the tax system can help lift Australia’s living standards into the top five in the OECD by 2012 by:

• Contributing to economic growth and productivity.
• Supporting social prosperity.
• Enhancing our engagement with the global economy.
• Achieving simplicity and low compliance cost.
• Providing fiscal stability.

The paper will be used to inform the BCA’s submission to the federal government tax review later this year.

Download a copy of A Better Tax Return below.

Task Force responsibility: Business Reform Task Force
Chairman: Mr Robert Milliner, Chief Executive Partner, Mallesons Stephen Jacques
BCA Secretariat contact: Ms Allesandra Fabro, Director Policy