The Business Council of Australia says the Opposition’s plan for tax bracket indexation is strongly welcomed and would help address bracket creep and return more money to workers, and it must be backed with fiscal discipline and a plan to pay for it.
The BCA expressed concern about the proposed significant reductions in migration levels, warning they risk constraining economic growth and worsening workforce shortages through potential cuts to skilled migration, and arguing that the appropriate approach is to ensure sufficient homes are built to support Australians and the skilled migration our country requires.
The BCA also welcomed measures to boost housing supply, including the proposed $5 billion housing infrastructure fund and efforts to reduce construction red tape.
Business Council Chief Executive Bran Black said tax bracket indexation was an ambitious reform that would deliver real relief for working Australians and said it must be matched with fiscal discipline and a plan to fund it.
“Indexing tax brackets is good reform and will help ensure workers are not paying higher tax rates simply because of inflation and wage growth, and this policy must be backed with a clear funding plan,” Mr Black said.
Mr Black said the BCA had long supported population growth being aligned with housing and infrastructure development but was concerned by the prospect of potential cuts to skilled migration.
“Australia depends on skilled migrants to build homes, care for older Australians and keep essential services running. One in three occupations face skills shortages and we cannot fill those gaps on our own.”
“We support, and have long called for, stronger links between population, housing and infrastructure planning, but the answer is to build more homes,” Mr Black said.
Mr Black said boosting housing supply must remain the central focus of housing policy.
“The proposed $5 billion housing infrastructure fund to support roads, water, sewerage and power infrastructure is a positive step that could help unlock additional housing supply.”
“Reducing red tape and simplifying the National Construction Code are also welcome measures.”
“The Business Council continues to call for a national target to reduce regulatory costs by 25 per cent by 2030. Excessive regulation and approval delays are driving up costs, slowing projects and making housing less affordable for Australians.”
“The BCA strongly supports policies that encourage institutional investment in supply, including build-to-rent. Removing those tax breaks would reduce housing supply, not increase it.”