Dick Warburton, chairman of Manufacturing Australia, recommended that the government cut the company tax rate to make Australian companies more competitive, The Australian reports.
Warburton, speaking at a Capital Gains forum organised by The Australian, advised the federal government to take measures such as cut the headline company tax rate, increase the GST, and do away with inefficient taxes.
“A lower tax rate would save businesses money but there is also the opportunity to offset it by getting rid of some of the inefficient taxes like the land taxes, the insurances taxes, some of the state government taxes,” he said.
"But governments won't [increase the GST to 12 or 15 per cent] . . . it's political dynamite, [but] I will continue to push the politicians and say 'Please, please do something about it'."
Last month the business tax working group recommended cutting the company tax – as well as do away with certain tax breaks – as a way to lift productivity.