The Business Council of Australia welcomes the comments by the Treasurer detailing the commitment to a comprehensive review of our taxation system. The BCA has been at the forefront of calls for the taxation system to be reviewed for several years.

In particular, we have repeatedly called for Australia's taxation system to be kept under permanent watch, to ensure that it provides an appropriate foundation for economic and social prosperity.

Given the serious inefficiencies highlighted in our Tax Nation report last year, the BCA particularly welcomes the inclusion of state and local taxes in the review. Reforming the federal–state tax divide will be a vital part of modernising Australia's federation.

As we highlighted in our budget submission in February, restructuring the taxation system will also require a careful look at funding arrangements and federal government expenditure.

If we are going to boost Australia's prosperity we need a competitive system that supports innovation and participation, and will underpin more comprehensive reforms to infrastructure, education, and state-federal relations. 

However, an efficient tax system also needs to be sustainable over the long term and this requires a hard look at both the tax mix and government spending.

It is encouraging that the government is allowing an appropriate amount of time in order for the review to be as comprehensive as possible.

We look forward to the terms of reference, and to participating in the review.

Holistic Review Is the Holy Grail (op-ed by Greig Gailey)

Boldness Will Put Us on Top by 2012 (op-ed by Greig Gailey)