"Ai Group welcomes the Treasurer's commitment to make tax reform a central focus of the upcoming Productivity Summit," said Innes Willox, Chief Executive of national employer association the Australian Industry Group.
"For many years, successive governments have tinkered around the edges of our tax system – leaving us with a system that has become progressively less efficient and fit for purpose. Poorly aligned tax settings are a major part of the low investment and productivity performance afflicting the Australian economy today.
"The Government should be commended for taking the well overdue step of opening a serious discussion on tax reform. This is an opportunity to begin a forward-looking process that envisions the Australian economy that we aspire to in coming decades.
"While consensus around the contours of tax reform will be a complex process, successful models for change have already been demonstrated. The abolition of around 500 so-called 'nuisance tariffs' is a prime example, which achieved tax simplification and relief for businesses and consumers in a fiscally-sustainable manner. This provides a reform template which should be applied across the tax system writ large.
"Wherever productivity is most in need of improvement, tax reform has a role to play. Whether in terms of the housing challenge, the sustainability of the care economy, the clean energy transition and more, we don't have the tax settings we need. Productivity-enhancing business investment can be unlocked with reform that makes our tax system simpler, more efficient and more competitive.
"The Australian Industry Group looks forward to working with the government before, during and after the August Productivity Summit to deliver the tax system Australia needs to achieve our industrial, economic and social aspirations," Mr Willox said.
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