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. 07.03.2021
    07.03.2021
    by      In , In
    If shopping for the latest items on the shelves excites you, then you have something in common with one of Australia’s leading manufacturing advocates.
    Dr Kymberley Talbot says she has a “blackbelt in shopping” but she is also Managing Director of the lithium-ion battery developer company, FELINE,... Read More
  2. ‘The YARDS’ precinct in Kemps Creek promises to be a benchmark in Australian industrial development and cements the region as a key distribution hub in New South Wales.
    04.03.2021
    04.03.2021
    by      In , In
    A $1 billion major industrial and logistics community project is set to begin construction in Western Sydney.
    ‘The YARDS’ precinct in Kemps Creek promises to be a benchmark in Australian industrial development and cements the region as a key distribution hub in New South Wales.
    The project is... Read More
  3. Karen Andrews
    04.03.2021
    04.03.2021
    by      In , In
    Australia’s rare earths and critical minerals were described as leading global assets, in a new grant program announced today from Tomago in the NSW Hunter region. 
    These comments were made as Minister for Industry, Science and Technology Karen Andrews, along with Prime Minister Scott Morrison,... Read More
  4. Editor Barry O’Hagan
    04.03.2021
    04.03.2021
    by      In , In
    Industry Update would like to give a warm welcome to our new editor, Barry O’Hagan.
    Barry brings a wealth of experience to the role, having worked as a media professional for more than 25 years.
    A former newspaper and magazine journalist, he has a passion for telling the stories of businesses and... Read More
Products
Suppliers