Australia Deserves an Informed Conversation on Tax Reform

“Misleading comments on tax reform made today by both the Victorian Premier Daniel Andrews, and Opposition Leader Bill Shorten, grossly underestimate the community’s understanding of what needs to be done to grow the Australian economy and create jobs,” BCA Chief Executive Jennifer Westacott said.

“The Victorian Premier is right in saying that simply changing the GST is not real tax reform, but he is throwing the baby out with the bath water when he rules out changing it.

“Australia's tax system is too reliant on taxes that sap incentives to work, invest and take risks at a time of weak growth.

“GST changes must be part of a package of comprehensive tax changes that encourage economic growth and underpin a stable revenue base for the future. Looking after households on low incomes is another important focus of comprehensive reform.

“Mr Shorten is certainly not canvassing real tax reform with a simplistic solution of cracking down on multinational tax avoidance and superannuation concessions. The ALP’s own modelling on their multinational tax proposal shows that it would yield just over $7 billion over 10 years, and more importantly these measures do not address the fundamental need for the tax system to promote growth.

“Politicians need to respect the Australian community enough to let them have an informed conversation about the optimum tax reform package.

“For the sake of the nation, it's time to stop treating people like mugs for purely political reasons,” Ms Westacott said.

For further information contact:
Claire Tedeschi, Executive Director, Communications and Advocacy
Business Council of Australia
Telephone (03) 8664 2602 • Mobile 0457 822 642