On average, over the next decade people will pay extra tax of more than $3,000 (in today’s terms) without serious action to address bracket creep, Business Council chief executive Jennifer Westacott said today.
“Our submission urges the Senate to pass the income tax plan without any changes and provide personal tax relief to more than 10 million Australians.
“Avoiding reform won’t mean nothing changes. Doing nothing will punish working Australians by imposing a 28 per cent average tax rate on full-time earnings a decade from now.
“If we don’t start to tackle bracket creep now it will hurt low and middle income earners most. These changes will strengthen our tax system by preventing millions of ordinary taxpayers from falling into unreasonably high tax brackets.
“We must have a personal tax system that does not discourage people from entering the workforce, working more hours or working in Australia.
“A competitive personal tax system will help ensure Australia attracts the best talent, which is critical to improving productivity and economic growth.
“Income tax cuts will complement the progressive reduction in the company tax rate to make businesses more competitive in the global contest for investment.
“When Australian businesses are thriving, the country can thrive and we can invest in the things the community needs - like tax relief to those people most at risk.”
The Business Council’s submission to the Senate Economics Legislation Committee inquiry into the Treasury Laws Amendment (Personal Income Tax Plan) Bill 2018 is available here.
Business Council media team
02 8224 9214