Huge call to slash taxes for businesses
It comes after Treasurer Jim Chalmers confirmed the intensive talks would take place between August 18 to August 21 and look at ways of improve Australia's tax system.
One of the key recommendations made by the PC's interim report released on Thursday was for the company tax rate to be dropped to 20 per cent for the majority of businesses with an annual turnover below $1bn, while companies with a turnover above $1bn would remain at 30 per cent.
The budget neutral move has been modelled to increase Australia's GDP by $14bn.
Currently Australia has a two-tier system where business with a turnover of less than $50m are hit with a 25 per cent tax rate, while companies above that threshold are taxed at 30 per cent. The Productivity Commission called for the company tax rate to be reduced by 10 per cent for all businesses with an annual turnover of less than $1bn. NewsWire/ Nicholas Eagar Credit: NewsWire
The cut to the company tax rate would be combined with a new 5 per cent net cashflow tax, which would target a business' profits instead of its total income, and effectively allows businesses to immediately deduct the full value of their investments.
This in turn boosts capital expenditure and is tipped to increase investment in the economy by $8bn.
PC deputy chair Alex Robson said the changes would support investment and productivity growth, warning that changes were needed urgently to ensure quality of life doesn't go backwards.
'If we don't get our economy moving again, today's children could be the first generation to not be better off than their parents,' he said.
'We need to spark growth through investment and competition – the best way to do that is to reform our company tax system.'
Jim Chalmers welcomed the report and said it would be 'important input' for the roundtable in August.
'This whole process is about building consensus to build a better future for Australians,' stating the government was 'ambitious to do more where we can'.
The Treasurer also noted the PC's three recommendations to 'prompt business dynamism,' which included setting a 'clear agenda' to slash red tape, and implement formal expectations for bureaucrats to deliver growth, competition and innovation through regulatory systems. The recommendations comes as the Treasurer has released its agenda for the Economic Reform Roundtable. NewsWire/ Martin Ollman Credit: News Corp Australia
It also called for more oversight to scrutinise new regulations, including creating an independent statutory commissioner and expanding the remit of the Commonwealth parliamentary scrutiny committees.
'Reducing regulatory burden is an important part of our productivity effort and we're working with regulators on potential reforms to be considered as part of the roundtable process,' Mr Chalmers said.
'We recognise that the best way to strengthen our economy and make it more productive is to work through these issues in a methodical and considered way in collaboration with business, unions and the broader community.'
The PC's recommendations comes as Labor has released the three-day agenda of its Economic Roundtable which features sessions on combating international risks, boosting business investment and cutting red tap.
A specific section will also be dedicated to AI and innovation, while the third day will focus on budget sustainability and tax reform.
Attendees will include Shadow treasurer Ted O'Brien, Wentworth MP Allegra Spender, former Treasury secretary and Australian Climate and Biodiversity Foundation chair Ken Henry and current secretary Kenny Wilkinson.
The ACTU's top brass including secretary Sally McManus and president Michele O'Neil, and business group leaders including Business Council of Australia boss Bran Black and Australian Industry Group head Innes Willox will also attend.
Mr Chalmers said he hoped the 'targeted agenda' would give the group the 'best possible chance of building consensus on the direction of economic reform'.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sydney Morning Herald
3 hours ago
- Sydney Morning Herald
Big business quick to veto productivity tax reform
Well, you can forget about Treasurer Jim Chalmers' three-day roundtable discussions leading to any improvement in the economy's productivity and growth, let alone getting the budget back under control. Late last week, the Business Council of Australia (BCA) persuaded all of Canberra's many other business lobby groups to join it in rejecting out of hand the Productivity Commission's proposal for reform of the company tax system which, the commission argued, would increase businesses' incentive to invest more in productivity-enhancing plant and equipment, without any net reduction in company tax collections. The proposal is for the rate of company tax to be cut for all but our biggest 500 companies, while introducing a 5 per cent tax on the net cash flow of all companies. The join statement by 24 business lobby groups says that 'while some businesses may benefit under the proposal, it risks all Australian consumers and businesses paying more for the things they buy every day – groceries, fuel and other daily essentials'. Get it? This is the lobbyists' oldest trick: 'We're not concerned about what the tax change would do to our profits, dear reader, we're just worried about what it would do you and your pocket. It's not us we worry about, it's our customers.' Loading Suddenly, their professed concern about the lack of productivity improvement and slow growth is out the window, and now it's the cost of living they're deeply worried about. They've been urging governments to increase the GST for years, but now they don't want higher prices. Yeah, sure. Bet you didn't know there are as many as 24 different business lobby groups in the capital. Their role is to advance the narrowly defined interests of their paying clients back in the rest of Oz by means fair or foul. They're not paid to help the government reach a deal we can all live with, nor to suggest that their clients worry about anything other than their own immediate interests. Canberra calls this lobbying. Economists call it rent-seeking. You press the government for special deals at the expense of someone else, while ensuring you contribute as little as possible. This, apparently, is the way democracy is meant to work.
The Age
3 hours ago
- The Age
Big business quick to veto productivity tax reform
Well, you can forget about Treasurer Jim Chalmers' three-day roundtable discussions leading to any improvement in the economy's productivity and growth, let alone getting the budget back under control. Late last week, the Business Council of Australia (BCA) persuaded all of Canberra's many other business lobby groups to join it in rejecting out of hand the Productivity Commission's proposal for reform of the company tax system which, the commission argued, would increase businesses' incentive to invest more in productivity-enhancing plant and equipment, without any net reduction in company tax collections. The proposal is for the rate of company tax to be cut for all but our biggest 500 companies, while introducing a 5 per cent tax on the net cash flow of all companies. The join statement by 24 business lobby groups says that 'while some businesses may benefit under the proposal, it risks all Australian consumers and businesses paying more for the things they buy every day – groceries, fuel and other daily essentials'. Get it? This is the lobbyists' oldest trick: 'We're not concerned about what the tax change would do to our profits, dear reader, we're just worried about what it would do you and your pocket. It's not us we worry about, it's our customers.' Loading Suddenly, their professed concern about the lack of productivity improvement and slow growth is out the window, and now it's the cost of living they're deeply worried about. They've been urging governments to increase the GST for years, but now they don't want higher prices. Yeah, sure. Bet you didn't know there are as many as 24 different business lobby groups in the capital. Their role is to advance the narrowly defined interests of their paying clients back in the rest of Oz by means fair or foul. They're not paid to help the government reach a deal we can all live with, nor to suggest that their clients worry about anything other than their own immediate interests. Canberra calls this lobbying. Economists call it rent-seeking. You press the government for special deals at the expense of someone else, while ensuring you contribute as little as possible. This, apparently, is the way democracy is meant to work.
The Advertiser
3 hours ago
- The Advertiser
'Perilous': largest-ever Gaza protest packs bridge
An unprecedented throng of protesters turned the Sydney Harbour Bridge into a sea of Palestinian flags and the centrepoint of public resistance to Israel's military action in Gaza. About 90,000 turned out on a wet and windy Sunday to spotlight suffering in Gaza after a police order to prohibit the protest was rejected by a court. Organiser Palestine Action Group said it aimed to draw attention to what the United Nations has described as worsening famine conditions in Gaza. Several Labor MPs including former NSW Labor premier and former federal foreign minister Bob Carr joined the march in defiance of Premier Chris Minns alongside multiple Greens and independent colleagues. The premier previously warned the city would "descend into chaos" if the protest went ahead. WikiLeaks founder Julian Assange joined Mr Carr at the rally with the pair seen leading the crowd and clutching a giant "Save Gaza" placard. Former Socceroos captain Craig Foster and former boxer and rugby league star Anthony Mundine added to the list of prominent attendees. Australians have been watching "an avalanche of atrocities that cannot be denied or erased", Foster told the crowd. "As a country we've said much but not acted as we must," he said. About an hour into the march and with increasing concerns for public safety, police urged protesters on the bridge to turn around "to avoid a crowd crush" and "risk of injury due to the huge number of people taking part". The force permitted protesters to return southbound across the bridge to the Sydney CBD after the march was initially proposed to end in North Sydney. By 5pm, bridge lanes had reopened in both directions. NSW Police Acting Commissioner Peter McKenna estimated attendance at about 90,000 people and described the crowd as the largest he had seen in Sydney. "We were really overwhelmed with numbers," he told reporters on Sunday evening, noting attendees were well behaved and thanking them for complying with police orders. Acting Assistant Commissioner Adam Johnson described the situation as "perilous" and worried police were going to have a "major incident with potential loss of life". "I can honestly say in my 35 years of policing, that was a perilous situation ... I've never seen a more perilous situation," he said. Rally speaker and independent Jewish journalist and author Antony Loewenstein said he saw "no evidence" the huge number of people who attended were in any physical danger due to the crowd's size. "Police are trying to create a fiction around an event they maybe weren't prepared for," he said. Federal Opposition Leader Sussan Ley questioned the shutting down of a "critical piece of infrastructure" in Sydney. "I respect the right of free speech and protest, but this is taking it to another level ... the protest could happen elsewhere," Ms Ley told Sky News. Labor backbencher Ed Husic, who has been more outspoken on ending the war in Gaza, emphasised unity. First time protesters and friends Ian Robertson, 74, and Greg Mullins, 66, said they hoped their attendance could make a difference. "The world's gone mad," Mr Mullins told AAP. "I came today because I don't want my kids telling me what were you doing when this mass murder and genocide was going on," Mr Robertson said. About 25,000 protesters also marched through Melbourne to block a major CBD thoroughfare but were stopped by a wall of riot police at the entrance to the King Street Bridge. Many in the crowd banged pots and pans in a nod to mounting concerns about mass starvation in Gaza. More than 60,000 Palestinians have been killed in the war in Gaza, according to local health authorities, while the United Nations says dozens of people have died in recent weeks due to starvation. Israel's military campaign began after militant group Hamas attacked Israel on October 7, 2023, killing 1200 people and taking more than 251 hostages. An unprecedented throng of protesters turned the Sydney Harbour Bridge into a sea of Palestinian flags and the centrepoint of public resistance to Israel's military action in Gaza. About 90,000 turned out on a wet and windy Sunday to spotlight suffering in Gaza after a police order to prohibit the protest was rejected by a court. Organiser Palestine Action Group said it aimed to draw attention to what the United Nations has described as worsening famine conditions in Gaza. Several Labor MPs including former NSW Labor premier and former federal foreign minister Bob Carr joined the march in defiance of Premier Chris Minns alongside multiple Greens and independent colleagues. The premier previously warned the city would "descend into chaos" if the protest went ahead. WikiLeaks founder Julian Assange joined Mr Carr at the rally with the pair seen leading the crowd and clutching a giant "Save Gaza" placard. Former Socceroos captain Craig Foster and former boxer and rugby league star Anthony Mundine added to the list of prominent attendees. Australians have been watching "an avalanche of atrocities that cannot be denied or erased", Foster told the crowd. "As a country we've said much but not acted as we must," he said. About an hour into the march and with increasing concerns for public safety, police urged protesters on the bridge to turn around "to avoid a crowd crush" and "risk of injury due to the huge number of people taking part". The force permitted protesters to return southbound across the bridge to the Sydney CBD after the march was initially proposed to end in North Sydney. By 5pm, bridge lanes had reopened in both directions. NSW Police Acting Commissioner Peter McKenna estimated attendance at about 90,000 people and described the crowd as the largest he had seen in Sydney. "We were really overwhelmed with numbers," he told reporters on Sunday evening, noting attendees were well behaved and thanking them for complying with police orders. Acting Assistant Commissioner Adam Johnson described the situation as "perilous" and worried police were going to have a "major incident with potential loss of life". "I can honestly say in my 35 years of policing, that was a perilous situation ... I've never seen a more perilous situation," he said. Rally speaker and independent Jewish journalist and author Antony Loewenstein said he saw "no evidence" the huge number of people who attended were in any physical danger due to the crowd's size. "Police are trying to create a fiction around an event they maybe weren't prepared for," he said. Federal Opposition Leader Sussan Ley questioned the shutting down of a "critical piece of infrastructure" in Sydney. "I respect the right of free speech and protest, but this is taking it to another level ... the protest could happen elsewhere," Ms Ley told Sky News. Labor backbencher Ed Husic, who has been more outspoken on ending the war in Gaza, emphasised unity. First time protesters and friends Ian Robertson, 74, and Greg Mullins, 66, said they hoped their attendance could make a difference. "The world's gone mad," Mr Mullins told AAP. "I came today because I don't want my kids telling me what were you doing when this mass murder and genocide was going on," Mr Robertson said. About 25,000 protesters also marched through Melbourne to block a major CBD thoroughfare but were stopped by a wall of riot police at the entrance to the King Street Bridge. Many in the crowd banged pots and pans in a nod to mounting concerns about mass starvation in Gaza. More than 60,000 Palestinians have been killed in the war in Gaza, according to local health authorities, while the United Nations says dozens of people have died in recent weeks due to starvation. Israel's military campaign began after militant group Hamas attacked Israel on October 7, 2023, killing 1200 people and taking more than 251 hostages. An unprecedented throng of protesters turned the Sydney Harbour Bridge into a sea of Palestinian flags and the centrepoint of public resistance to Israel's military action in Gaza. About 90,000 turned out on a wet and windy Sunday to spotlight suffering in Gaza after a police order to prohibit the protest was rejected by a court. Organiser Palestine Action Group said it aimed to draw attention to what the United Nations has described as worsening famine conditions in Gaza. Several Labor MPs including former NSW Labor premier and former federal foreign minister Bob Carr joined the march in defiance of Premier Chris Minns alongside multiple Greens and independent colleagues. The premier previously warned the city would "descend into chaos" if the protest went ahead. WikiLeaks founder Julian Assange joined Mr Carr at the rally with the pair seen leading the crowd and clutching a giant "Save Gaza" placard. Former Socceroos captain Craig Foster and former boxer and rugby league star Anthony Mundine added to the list of prominent attendees. Australians have been watching "an avalanche of atrocities that cannot be denied or erased", Foster told the crowd. "As a country we've said much but not acted as we must," he said. About an hour into the march and with increasing concerns for public safety, police urged protesters on the bridge to turn around "to avoid a crowd crush" and "risk of injury due to the huge number of people taking part". The force permitted protesters to return southbound across the bridge to the Sydney CBD after the march was initially proposed to end in North Sydney. By 5pm, bridge lanes had reopened in both directions. NSW Police Acting Commissioner Peter McKenna estimated attendance at about 90,000 people and described the crowd as the largest he had seen in Sydney. "We were really overwhelmed with numbers," he told reporters on Sunday evening, noting attendees were well behaved and thanking them for complying with police orders. Acting Assistant Commissioner Adam Johnson described the situation as "perilous" and worried police were going to have a "major incident with potential loss of life". "I can honestly say in my 35 years of policing, that was a perilous situation ... I've never seen a more perilous situation," he said. Rally speaker and independent Jewish journalist and author Antony Loewenstein said he saw "no evidence" the huge number of people who attended were in any physical danger due to the crowd's size. "Police are trying to create a fiction around an event they maybe weren't prepared for," he said. Federal Opposition Leader Sussan Ley questioned the shutting down of a "critical piece of infrastructure" in Sydney. "I respect the right of free speech and protest, but this is taking it to another level ... the protest could happen elsewhere," Ms Ley told Sky News. Labor backbencher Ed Husic, who has been more outspoken on ending the war in Gaza, emphasised unity. First time protesters and friends Ian Robertson, 74, and Greg Mullins, 66, said they hoped their attendance could make a difference. "The world's gone mad," Mr Mullins told AAP. "I came today because I don't want my kids telling me what were you doing when this mass murder and genocide was going on," Mr Robertson said. About 25,000 protesters also marched through Melbourne to block a major CBD thoroughfare but were stopped by a wall of riot police at the entrance to the King Street Bridge. Many in the crowd banged pots and pans in a nod to mounting concerns about mass starvation in Gaza. More than 60,000 Palestinians have been killed in the war in Gaza, according to local health authorities, while the United Nations says dozens of people have died in recent weeks due to starvation. Israel's military campaign began after militant group Hamas attacked Israel on October 7, 2023, killing 1200 people and taking more than 251 hostages. An unprecedented throng of protesters turned the Sydney Harbour Bridge into a sea of Palestinian flags and the centrepoint of public resistance to Israel's military action in Gaza. About 90,000 turned out on a wet and windy Sunday to spotlight suffering in Gaza after a police order to prohibit the protest was rejected by a court. Organiser Palestine Action Group said it aimed to draw attention to what the United Nations has described as worsening famine conditions in Gaza. Several Labor MPs including former NSW Labor premier and former federal foreign minister Bob Carr joined the march in defiance of Premier Chris Minns alongside multiple Greens and independent colleagues. The premier previously warned the city would "descend into chaos" if the protest went ahead. WikiLeaks founder Julian Assange joined Mr Carr at the rally with the pair seen leading the crowd and clutching a giant "Save Gaza" placard. Former Socceroos captain Craig Foster and former boxer and rugby league star Anthony Mundine added to the list of prominent attendees. Australians have been watching "an avalanche of atrocities that cannot be denied or erased", Foster told the crowd. "As a country we've said much but not acted as we must," he said. About an hour into the march and with increasing concerns for public safety, police urged protesters on the bridge to turn around "to avoid a crowd crush" and "risk of injury due to the huge number of people taking part". The force permitted protesters to return southbound across the bridge to the Sydney CBD after the march was initially proposed to end in North Sydney. By 5pm, bridge lanes had reopened in both directions. NSW Police Acting Commissioner Peter McKenna estimated attendance at about 90,000 people and described the crowd as the largest he had seen in Sydney. "We were really overwhelmed with numbers," he told reporters on Sunday evening, noting attendees were well behaved and thanking them for complying with police orders. Acting Assistant Commissioner Adam Johnson described the situation as "perilous" and worried police were going to have a "major incident with potential loss of life". "I can honestly say in my 35 years of policing, that was a perilous situation ... I've never seen a more perilous situation," he said. Rally speaker and independent Jewish journalist and author Antony Loewenstein said he saw "no evidence" the huge number of people who attended were in any physical danger due to the crowd's size. "Police are trying to create a fiction around an event they maybe weren't prepared for," he said. Federal Opposition Leader Sussan Ley questioned the shutting down of a "critical piece of infrastructure" in Sydney. "I respect the right of free speech and protest, but this is taking it to another level ... the protest could happen elsewhere," Ms Ley told Sky News. Labor backbencher Ed Husic, who has been more outspoken on ending the war in Gaza, emphasised unity. First time protesters and friends Ian Robertson, 74, and Greg Mullins, 66, said they hoped their attendance could make a difference. "The world's gone mad," Mr Mullins told AAP. "I came today because I don't want my kids telling me what were you doing when this mass murder and genocide was going on," Mr Robertson said. About 25,000 protesters also marched through Melbourne to block a major CBD thoroughfare but were stopped by a wall of riot police at the entrance to the King Street Bridge. Many in the crowd banged pots and pans in a nod to mounting concerns about mass starvation in Gaza. More than 60,000 Palestinians have been killed in the war in Gaza, according to local health authorities, while the United Nations says dozens of people have died in recent weeks due to starvation. Israel's military campaign began after militant group Hamas attacked Israel on October 7, 2023, killing 1200 people and taking more than 251 hostages.
