none
none

LABOR'S PROPOSED TAX CHANGES COULD HIT JOBS, SAY INDUSTRY GROUPS

07-03-2015
by 
in 

Tax changes proposed by the Federal Labor Opposition could lead to fewer job opportunities, the Australian Chamber of Commerce and Industry claims.

ACCI CEO Kate Carnell said the proposed changes could also have significant “unintended” consequences for major project investment.

Labor leader Bill Shorten recently unveiled the proposed changes – his first substantial tax policy as Opposition leader.

He said Labor could raise almost $2 billion in extra revenue by cracking down on multinational profit shifting and boosting funding for the Australian Tax Office to investigate corporate tax avoidance.

Ms Carnell said the changes should only be considered as part of coordinated global action along with other OECD nations. 

“Labor's tax changes could make Australia a less attractive place for international investment, thereby pushing new projects offshore and hurting jobs,” she said. “Any changes to Australia’s international tax rules must be made in cooperation with our OECD partners and be part of the wider tax white paper process. Otherwise we run the risk of undermining investment and worsening unemployment."

“Recently there have been major changes to thin capitalisation rules and now is not the time for unilateral action.”

Ms Carnell said business needs greater consistency and certainty in our tax laws if Australia is to remain an attractive place to invest and do business.

Mr John Osborn, ACCI Director of Economics & Industry Policy, said: “All businesses need to pay their fair share of tax and it should be paid in the country in which profits are made. That’s why we support the Government’s efforts through the G20 to address the issue of base erosion and profit shifting. But we need to be careful we don’t reach for blunt solutions that end up doing more harm than good."

“A lot more thought needs to go into the proposed worldwide gearing ratio to ensure that legitimate activities overseas don’t have negative consequences for operations in Australia. It is not yet clear that Labor’s proposal does this.”

The Australian Industry Group said the proposed changes should be rigorously assessed to ensure they do not come at the detriment of economic growth and jobs.

AiGroup Chief Executive Innes Willox said Australia needs a tax system that raises predictable revenues without unnecessarily hindering economic growth and jobs.

“Ad-hoc taxation reform that pits one group against another will not lead to the taxation system that we need.”

 Mr Willox said Labor’s proposals would deter multinationals from doing business in Australia to the detriment of the national economy.

Related news & editorials

  1. ETA’s warehouse has extensive Bonfiglioli stock
    11.01.2018
    11.01.2018
    by      In
    Bonfiglioli’s partnership with its largest Australian distributor, Engineering Transmission Agencies (ETA), brings quality, reliability and performance to Queensland and Northern NSW customers in industries such as mining, manufacturing, bulk materials handling, food and beverage, water and waste.... Read More
  2. Australian flag
    11.01.2018
    11.01.2018
    by      In
    It’s official: Australia is an Innovation Champion. That is the view of the US Consumer Technology Association, which launched its inaugural International Innovation Scorecard at the Consumer Electronics Show in Las Vegas.
    The scorecard is a development from the association’s annual ranking of US... Read More
  3. 10.01.2018
    10.01.2018
    by      In
    Australian company CST Wastewater Solutions has put together an environmentally friendly and cost-efficient wastewater treatment system for smaller, remote and ecologically sensitive community, municipal, agribusiness and industrial applications throughout the Asia-Pacific region.
    The two-stage... Read More
  4. 10.01.2018
    10.01.2018
    by      In
    US-based utility-scale solar power specialist SolarReserve has received development approval for its Aurora Solar Energy Project in South Australia.
    The project is located on farmland 30km north of Port Augusta and is centred on a 150MW solar thermal power station with 1100MWh of molten salt energy... Read More