Australia’s biggest business lobby groups join forces in AI, data centre and tax cut push
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The news: A collective of 27 of the nation's biggest business lobby groups, research institutes and professional organisations is recommending the government undertake a holistic review of the tax system and "only" implement "risk-based regulations" where there are gaps in the current legislation.
The requests form a submission being provided to the federal government ahead of Treasurer Jim Chalmers' upcoming Economic Reform Roundtable.
The joint group has sought reforms across four areas: boosting investment and innovation, reducing red tape through better regulation, improving planning and major project approvals, and comprehensive tax reform.
It specifically wants a National AI Skills Compact to be created to "formalise collaboration, boost investment in these skills, creating a structured partnership to scale talent pipelines, align training with industry needs, and expand access to AI careers" and the creation of an Australian AI Safety Institute.
And it wants digital infrastructure development — including data centres, fibre and mobile networks — radically simplified, by creating a public-private council bringing together all levels of government, tech companies and infrastructure providers.
The numbers: The group wants a research and development and investment roadmap developed to drive a lift in R&D to 3% of GDP from 1.7%. It is also seeking a revision of R&D tax settings including an abolition of the spending threshold, or an increase to $250 million, an increase in the small business threshold or accelerated depreciation.
The group further wants a 25% reduction in “regulatory costs” by 2030.
And it has sought a review of the tax system, saying "broad-based tax reform should rebalance Australia’s tax mix in a way that better promotes growth and investment".
The context: The 27 industry groups include:
- 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 Council
- Australian Energy Producers
- Australian Industry Group
- Australian Investment Council
- Australian Retail Council
- Australian Travel Industry Association
- Business Council of Australia
- Chartered Accountants Australia and New Zealand
- Communications Alliance
- CPA Australia
- Corporate Tax Association
- Council of Small Business Organisations
- Energy Networks 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
- Universities Australia
What they said: Business Council of Australia chief executive Bran Black said the government needed to cut red tape, "streamline planning, fix the tax system and improve incentives for investment".
Australian Banking Association chief executive Anna Bligh said to lift living standards, Australia needed to back world-class research and remove barriers to investment.
“Australia cannot afford to fall behind in the global race for world leading technologies,” Bligh said.
The source: Joint Group of Industry Associations submission
