The Business Council welcomed the announcement today of a review into the competitiveness of Australia’s tax system.
BCA Chief Executive, Ms Katie Lahey, said the review was recognition of the centrality of a competitive tax regime to the country’s future prosperity.
“There continues to be no shortage of commentary and analysis on whether key parts of the tax system risk holding back growth and investment.
“The BCA, for its part, believes that Australia is losing ground in key areas of its personal and corporate tax structures. Therefore, the review is timely and should aim to provide greater clarity around these issues.
“In addition, it should provide the platform for regular reviews into the structure and competitiveness of the tax system.
“The fact is that in a global economy, governments at all levels are in competition with each other for investment and jobs.
“They cannot be wedded to tax structures and rates without considering their impact on their economy’s competitiveness internationally.”
In particular, the review should examine the following in detail:
- Australia’s overall corporate tax burden, which according to BCA research released last year is one of the highest in the OECD.
- The relationship between personal tax rates and incentives that encourage people to enter or remain in the workforce.
- The relationship, and potential future reform, of Commonwealth–state taxing arrangements.
- Ways to streamline the administration and compliance burden of the tax system.
The BCA will provide input into the review where appropriate.