Media Mistake

Some news reports today have claimed that the Business Council of Australia has called for a radical overhaul of the tax system, including specific proposals in relation to income tax, the GST and capital gains tax.

These reports are wrong. The BCA is not advocating any such proposals. The BCA launched its agenda for the year on March 5, 2002. The news release at that launch stated the priorities for taxation as follows:

“International Tax

Raising the quantity and productivity of investment is central to Australia’s ability to meet the BCA target growth rate of 4 per cent. There are a number of elements to an improved investment performance, many of which overlap with work being done in education and the regulatory environment. In the short term, the BCA will look to improve the pattern of taxation in Australia, with particular immediate emphasis on the international tax system. We are framing and costing our priorities for the international tax review announced by the Federal Government.”

The review of international tax arrangements was announced last week by the Treasurer, and the BCA expects to play an active and constructive role in that review.