Joint Group of Industry Organisations statement in response to Productivity Commission report

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

Regulation & Policy