Pitcher Partners’ Howard Badger today said that regardless of whether the Federal Budget is delivered in the first or second week of May, the key for Government is to kick off a proper process of tax reform.
“Frankly it’s at the point where we really just need certainty on tax reform, and we need to address the Australian economy’s growing revenue gap,” said Howard Badger.
“No one is properly contemplating tax reform for fear of the election, and that’s a terrible situation for the Australian economy.
“Federal Budgets should be opportunities for Government and Opposition to lay out a tax plan to the Australian public, but that’s not we’ve seen over the last few years.
“Currently neither the Government nor the Opposition has a clear and defined position on tax reform.
“The Government has to lead the process on tax reform, and if bringing the Budget forward allows the Government to get the election out of the way and devote their minds fully to tax reform, the better the outcome will be for the Australian public.”
Howard Badger also emphasised the criticality of engaging in meaningful tax reform, and urged the government not to arbitrarily limit its deliberations.
“We’ve seen the Government pull back on GST reform already this year, which is a shame, because a broad-based indirect tax can collect revenue from people who would otherwise not be taxed, such as tourists, and is more effective than income tax in tackling the digital economy than some of the measures proposed.
“Australia needs to look at its position in the global economy and think about what tax structure results in our economy remaining competitive. Failing to address both the level of Government spending and the taxation system will put us at a significant disadvantage into the future.”
For further comment, please contact:
Howard Badger, Partner, Pitcher Partners Sydney, 02 9221 2099
Sabine Wolff, Media and Communications Advisor, Pitcher Partners, 0419 529 577