This is an additional submission to the Senate Economics References Committee Inquiry into Corporate Tax Avoidance and Minimisation after the committee resolved to broaden the scope of its inquiry to include Australia’s offshore oil and gas industry.
The Business Council believes that PRRT has worked appropriately to date and no changes should be pursued without a clear, demonstrable net benefit from doing so. The potential for policy reversals to jeopardise future investment is of serious concern.
Changes to any tax settings should improve the design and efficiency of the tax system, rather than seek to increase revenues to fund unsustainable spending growth.
The Business Council is also concerned that ad hoc changes to the tax system are not considering the cumulative impact on the investment environment or the best design of the whole tax system.