The BCA is encouraged that the government has responded to business concerns that the initial proposal for the Resources Super Profits Tax was harming Australia’s national interest.
The Prime Minister’s announcement today goes some way to alleviating those concerns and the proposed arrangements represent an improvement on the initial scheme.
However, aspects of the agreement and the process to achieve it remain far from ideal.
The agreement reached today must not set a precedent for the way tax reform is conducted. It remains fundamental that new tax arrangements should not be applied in a way that adversely affects existing investments.
Tax reform must involve a comprehensive process of consultation that allows for stakeholders to contribute effectively to policy development and for reform options to be fully tested.
The BCA calls on the government to renew its commitment to genuine root and branch tax reform and to outline a long term tax reform agenda.
The BCA will continue to press for comprehensive reform, including a reduction of the reliance on corporate and capital income, to better support investment and productivity and enhance Australia’s competitiveness and growth prospects.