Australians will have more money in their pockets and the economy will receive a much-needed boost as a result of yesterday's successful passage of personal income tax reforms, Business Council chief executive Jennifer Westacott said.
“I congratulate the Morrison government and the parliament on getting this done and reforming an incentive-sapping system of five tax brackets that stopped workers getting ahead.
“This is also a critical first step to ensure the Australian economy can grow faster. We have to keep the focus on growing the economy.
“Under the government’s three-stage tax package, Australians will have a simpler and fairer tax system.
“Tackling bracket creep means Australians will have more choices on how they spend or invest more of their own hard-earned money.
“The reforms remove disincentives that discourages workers from entering the workforce, doing a few extra hours, or getting a new job.
“Importantly, the changes mean the tax system will remain progressive and fair — workers who earn the most, will still pay the most tax. Someone earning $200,000 will still pay 10 times the amount of tax that someone earning $45,000 will pay.
“Yesterday's success is also a call to action to our parliament to continue to work with the government to deliver faster economic growth.
“Personal income tax reforms are a good start, but we must act to implement a long-term growth agenda.
“Employers stand ready to work with the Morrison government to put forward common-sense measures that deliver higher investment and the skilled workforce Australia needs.
“Our economy is slowing and productivity, which is the key driver of wages growth, is going backwards – we need to pull out all stops to grow the economy that provides more opportunities for all Australians.”