“Today’s announcement of the government’s plans to deal with the backlog of 92 unlegislated tax and superannuation measures should boost business certainty and confidence by clearing the decks of a number of recent piecemeal changes,” Business Council of Australia Chief Executive Jennifer Westacott said.
“The backlog of tax measures announced but not legislated in recent years underscores the consequences of pursuing ad hoc tax measures across a number of fronts without comprehensive processes and a coherent framework for tax reform.
“In particular, the BCA is pleased that the government will not proceed with the repeal of section 25-90 of the Income Tax Assessment Act 1997 under the thin capitalisation changes announced in the budget earlier this year. This would have generated significant compliance costs for many companies.
“Building on today’s announcement, the Business Council looks forward to a more consultative approach to tax reform that minimises the likelihood of unintended consequences, and gives businesses more certainty and stability.”
The BCA’s Action Plan for Enduring Prosperity, released in July, called for the government to undertake a comprehensive overhaul of the taxation system so Australia can meet future revenue requirements while supporting economic growth and competitiveness.
“Today’s announcement and the government’s commitment to undertake a white paper process for tax reform has the potential to place Australia on a surer path to comprehensive tax reform”, Ms Westacott said.
For further information contact:
Scott Thompson, Director, Media and Public Affairs
Business Council of Australia
Telephone (03) 8664 2603 | Mobile 0403 241 128