The Productivity Commission proposal to tax business cash flow is an experimental change that hasn't been tried anywhere else in the world.
This tax increase risks putting more pressure on all Australians still struggling under cost-of-living pressures.
While some businesses may benefit under this proposal, it risks all Australian consumers and businesses paying more for the things they buy every day – groceries, fuel and other daily essentials.
This approach punishes some of our most productive companies and industries, which touch our lives every day and employ millions of Australians.
This proposal is based on the premise that tax reform must be revenue neutral – a tax reform discussion must be a holistic one. The Productivity Roundtable should be focused on practical ideas to lower the cost-of-living – cutting red tape, better regulation – rather than introducing more uncertainty for the country.
While the Commission's focus on cutting red tape is positive, increasing taxes will not increase investment or fix lagging productivity.
This joint statement is on behalf of:
- Australian Institute of Company Directors
- Australasian Convenience and Petroleum Marketers Association
- Australian Airports Association
- Australian Banking Association
- Australian Chamber of Commerce and Industry
- Australian Energy Producers
- Australian Industry Group
- Australian Investment Council
- Australian Retailers Association
- Australian Telecommunications Alliance
- Australian Travel Industry Association
- Business Council of Australia
- Chartered Accountants Australia and New Zealand
- CPA Australia
- Corporate Tax Association
- Council of Small Business Organisations Australia
- Group of Eight
- Insurance Council of Australia
- Master Builders Australia
- Minerals Council of Australia
- National Farmers' Federation
- Property Council of Australia
- Tech Council of Australia
- Tourism and Transport Forum
