"The Treasurer's announced review of red tape complexity afflicting Australia's business taxes is welcome and must leave no stone unturned if we are to fix our currently complex and inefficient tax system," said Innes Willox, Chief Executive of the national employer association, Australian Industry Group.
"The current business taxation system is failing Australia. Our taxes are too complex, internationally uncompetitive and a barrier to investment and productivity growth.
"In the leadup to the Treasurer's Economic Reform Roundtable, Australian Industry Group called for a systematic review that could rationalise and simplify the inchoate mess of business taxes. We are very pleased to see the Treasurer now beginning this foundational step for our national productivity reform agenda.
"It is critical that the Board of Taxation take a broad approach which identifies tax problems system-wide. We estimate that a nationally-operating business in Australia pays over 100 different taxes when all federal and state measures are considered. Many are microtaxes that impose far greater compliance costs on business than the relative tiny revenue streams they generate.
"This is the very opposite of the simple and competitive tax system we need to allow businesses to be efficient and competitive.
"The review must put all measures – whether taxes, levies, tariffs, duties or charges – at all levels of government on the table. It must also put simplification in it sights, and explore options to rationalise the excessive number of business taxes and the compliance burdens they impose.
"The Government has already made commendable progress in twice reforming Australia's nuisance tariffs. Now is the time to take that methodology and apply it tax-system-wide.
"We look forward to working with the Board of Taxation and the Treasurer in shaping reform of the tax system to deliver a more competitive and productive Australia," Mr Willox said.
