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Home Asia Pacific

Tax Reform reguired to grow the economy and boost job growth

March 9, 2016
in Asia Pacific, News

The Minerals Council of Australia (MCA) strongly supports the key conclusions and recommendations on tax reform outlined by the Business Council of Australia (BCA) in Realising our Full Potential: Tax Directions for a Transitioning Economy.

Tax reform has a critical role to play to increase economic growth and to improve our global competitiveness in the face of new economic headwinds.

The BCA’s policy paper correctly recognises that out-dated tax arrangements are holding Australia back and that the focus of tax reform should be boosting economic growth, not paying for ever higher spending by government.

The MCA supports a staged process of reform to personal income and company tax rates, taking account of fiscal circumstances.

It is nonetheless important that the Turnbull Government shortly outline a road map for lower tax, including a lower rate of company tax.

As the BCA paper notes, Australia’s high company tax rate deters investment and innovation and Australia has slipped well behind competitor nations that have lowered their corporate tax rates over the past decade.

To ensure Australia’s mining industry is positioned to take advantage of new economic opportunities, we must take decisions now to improve our tax competiveness.

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