The Business Council of Australia has long highlighted the economic necessity of a competitive tax system.
The BCA’s five principles for tax reform state that the tax system should:
The BCA made submissions to the Henry tax review including Unrealised Gains: The Competitive Possibilities of Tax Reform.
- support investment and growth through a reduced reliance on taxes on capital and income and a greater reliance on broad-based taxes on consumption
- be consolidated to contribute to the further growth and development of a seamless national economy, and should also enhance international competitiveness
- be characterised by stability and predictability with any changes prospective so as not to adversely affect existing investments or create perceptions of sovereign risk
- be transparent, simple to administer and minimise compliance burdens on taxpayers
- raise revenue through taxes that are less exposed to the volatility associated with the business and commodity cycles.
In 2011 BCA Chief Executive Jennifer Westacott participated in the federal government’s tax forum. The BCA submission to the forum, titled Preparing for a Better Future: Progressing Comprehensive Tax Reform in Australia, outlined four key actions needed to progress comprehensive tax reform in Australia.
The Business Council of Australia will continue to advocate a tax system designed to promote investment and economic growth and to encourage higher savings.
BCA Secretariat contact: Peter Crone, Chief Economist and Director Policy