Business groups to push for corporate tax cuts at productivity summit
Business leaders will use August’s productivity summit to call for broad tax reform, warning current settings are choking investment and economic growth.
The business community will push for a corporate tax cut at the upcoming productivity summit, following formal submissions warning that Australia is falling behind in global competitiveness.
Rising tax burdens on companies and individuals, along with the challenge of red tape, have been cited in submissions to the Productivity Commission’s inquiry into business and economic dynamism. Business lobby leaders and policy groups now want the August summit to broaden its focus to include tax reform.
A submission from employer association Ai Group, seen by Capital Brief, warns that the “burden” of company tax has risen over the past decade — increasing to 5.4% of GDP in 2023–24, up from 4.2% in 2013–14.
“Had that rate of effective burden been maintained over the last decade, company tax revenue today would be $37.3 billion lower,” it says.
