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Enacting tax bill would be a major step along road to fit-for-purpose tax system

"Enacting the Bill that has passed the lower house would be a major step along the road to a fit-for-purpose tax system. The Bill would phase down the company tax rate to 25 percent by the start of the 2026-27 year. The reduction would boost investment, capital per employee, productivity and lay the foundation for a lift in real wages," Australian Industry Group Chief Executive, Innes Willox, said today.

"Importantly, this extended timeframe would allow a more comprehensive approach to tax reform to be introduced in parallel with the company tax rate proposal and by the middle of the next decade, Australia could have in place a more robust, sustainable and competitive tax system.

"Australia's tax system has a number of serious flaws: there is an over-reliance on income taxation; an approach to property taxation that is one of the worst in the OECD; we have a reliance on fuel excise which is facing a major erosion threat; we have a serious mismatch between the revenue raising powers of the states and territories and their spending responsibilities; and our company tax rate is uncompetitively high and made all the more so with the recent changes in the US," Mr Willox said. 

Media enquiries: Tony Melville – 0419 190 347