Request for even more tax reforms

BUSINESS groups have welcomed the federal government’s infrastructure spending, tax cuts and investment incentives but say further tax reform must be on the table.

Townsville Chamber of Commerce president Michele Falconieri said the extension of stimulus measures like the instant asset write off, as well as training and apprenticeship incentives, were welcome.

“It was also good to hear the government’s recognition of the importance of small businesses,” Mr Falconieri said.

He said it would be interesting to hear more detail around the government’s new independent Small Business Umpire who will mediate in disputes over tax debt between the Australian Taxation Office and businesses with turnover of less than $10m.

Mr Falconieri said large infrastructure spending on the Bruce Highway, road safety upgrades and local road upgrades were welcome.

He said the expansion of the National Recovery and Resilience Agency, and the announcement of a $10bn government guaranteed reinsurance pool to make insurance more affordable for Northern Australia, were excellent ways to boost confidence and allow the private sector to activate.

“The Townsville Chamber of Commerce congratulates the government for recognising regional businesses and the need to continue spending responsibly to maintain the growth businesses have started to see and stimulate the confidence necessary to allow the private sector to invest and grow so Townsville, Queensland and Australia can emerge from the pandemic in a much stronger position,” Mr Falconieri said.

Chamber of Commerce and Industry Queensland spokeswoman Amanda Rohan said tax incentives and an accelerated reduction in the tax rate for small and medium businesses to 25 per cent from July 1 would help further stimulate jobs and capital investment.

But CCIQ said while there had been substantial support to cushion the economic impact of COVID-19, removing impediments through further tax reform at state and federal levels must also be on the table.

CCIQ’S head economist, Jack Baxter, said $4.2bn of payroll tax revenue in Queensland in 2020 was equal to about 50,000 full-time jobs.

“While payroll tax is a state issue, the Commonwealth must do more to assist the states and territories make significant changes, enabling businesses to generate confidence and stimulate the economy through expenditure,” Mr Baxter said.