The Business Council of Australia said that reform of Australia’s taxation system should remain centre stage for 2004.
Supporting the Business Coalition for Tax Reform budget submission released today, the BCA renewed its call for Parliament to pass the international tax measures announced in the 2003 Budget.
BCA Chief Executive, Ms Katie Lahey said the international tax package will provide Australia with a more competitive tax system at a limited cost.
“An efficient and equitable tax system will attract more investment and skilled labour which will be a key component in ensuring Australia’s economy will grow in the future.
“These reforms will benefit Australian-based companies and also skilled individuals who might otherwise be discouraged from working in Australia because of its current tax arrangements,” Ms Lahey said.
Ms Lahey added that the BCTR submission gave compelling arguments for an overhaul of the personal taxation system.
“The high marginal tax rates and the high effective marginal tax rates many families face are having an impact on the long-term economic growth potential of Australia.
“Our current personal taxation rates can drive decisions about workforce participation and the rate of savings by Australians. They can also distort investment decisions and fuel the black economy,” she said.
The BCA is a member of the Business Coalition for Tax Reform.