1 August 2025
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
Latest news
E&OERadio InterviewABC Radio Sydney29 July 2026 Topics: ASIC report into offset accounts Thomas Oriti: Do you have an offset account? I think most people with a mortgage do. If you don’t know what I’m talking about, it’s an account that’s linked to your mortgage and it saves you interest. So, I’ll give you an example…. Read more »
E&OETV InterviewABC News29 July 2026. Topics: ASIC report into offset accounts Ros Childs: Borrowers are being advised to check if they have paid more interest than they should following an ASIC review. The two-year review conducted by the corporate watchdog has found weaknesses in how eight banks monitored and managed offset accounts, resulting in borrowers… Read more »
E&OETV InterviewDoorstop29 July 2026 Topics: ASIC report into offset accounts Journalist: Simon, what’s your reaction to the report from ASIC today? Simon Birmingham: ASIC’s report is really important and it’s welcomed by the banking industry. This report shows that in well over 99 per cent of cases, mortgage offset accounts are working exactly they should… Read more »