The Future of Tax: Tax White Paper Initial Submission
Australia needs a comprehensive package of tax reform that brings the whole community along and delivers a tax system that works for all Australians.
If we are to create a stronger and more resilient economy we need businesses to invest, flourish and create more jobs but our tax system is holding us back.
The BCA's initial submission to the tax white paper process outlines seven key directions for tax reform.
• An income tax system that better rewards effort including reducing reliance on personal income tax through re-benchmarking personal income tax rates.
• A more competitive business environment including reducing the company tax rate to 25 per cent.
• Greater use of a more efficient GST including broadening its base and increasing its rate.
• Transitioning away from highly inefficient and volatile state taxes.
• Encouraging efficient savings through moving to more neutral, concessional treatment of savings.
• A simpler tax system to reduce the compliance burden.
• Redesigning government programs to reduce spending growth and repair the budget and using user charges where appropriate to replace general taxation.
Tax reform should not be about increasing the overall tax burden to plug holes in a broken system, but about how we can support a growing economy, investment and more jobs, and a secure social safety net.