Business Council of Australia chief executive Jennifer Westacott has welcomed the Federal Opposition’s recognition of the importance of business in growing the economy and its decision to apply the Australian Investment Guarantee to all companies regardless of their size.

“Chris Bowen is right that business investment has been disappointing in recent years and that locking in stronger investment will create jobs.

“While this is a positive move, it will not be enough to drive economy-wide investment needed to achieve the higher growth that creates jobs and improves living standards. It will not address Australia’s faltering international competitiveness.

“The Opposition’s proposal to defer the company tax burden on investment is based on the same principle as the proposed company tax reductions before the senate. But its effect on investment would be much smaller.

“It is too small and too narrowly focused. It simply won’t be a big enough boost to keep Australia globally competitive.

“Giving Australians access to the jobs and growing wages they deserve means passing company tax cuts to help Australian businesses compete.

“We’re talking about a $65 billion revenue impact for a $180 billion net GDP gain over a decade. Legislating future company tax cuts will bring forward business investment plans because these decisions are being made in boardrooms today.”