Worldwide Import-Export Information & Resources

Australia - The Australian Chamber of Commerce and Industry, Australia’s largest and most representative business organisation, says that delivering a fair deal on promised business tax relief whilst redesigning acceptable tax arrangements for the resources industry is a major policy challenge for the Gillard Government.

ACCI also warned that it would be unfair if business tax relief was set aside but the superannuation tax to be paid by business still kept in place.

“It will not be a balanced tax reform package if the business tax relief promised in last month’s Federal Budget is watered down or set aside simply because the original resource super profits tax was flawed.”

“The business tax cuts account for only one third ($3.23bn) of the $9bn extra annual revenue projected from the resource tax. There is scope in a $400bn budget to undertake the necessary redesign of the resource tax while still delivering the promised business tax relief.”

“As recently as last weekend senior ministers were rightly spruiking the merits of the proposed cuts in company tax and the small business asset write-off and depreciation tax breaks. They reward business people who work hard, reflecting the values new Prime Minister Gillard echoed in her first Prime Ministerial press conference last week.”

“Tax reform has to meet basic tests of fairness. It would not be fair for the government to cherry-pick its tax package by withdrawing or watering down the business tax cuts it promised but keeping in place the superannuation tax hit on industry.”

“Even as it is, the promised tax cuts of $3bn per year are smaller than the $9bn extra the government planned to raise from the resource industry and the phased $20bn superannuation tax on employers.”
“Renegotiating tax arrangements in the resource industry will not restore confidence and certainty if the interests of the business community as a whole are not fairly addressed.”

Source: http://www.acci.asn.au/text_files/media_releases/2010/083-10.pdf