"The Productivity Commission has presented a detailed plan for consideration to increase our national productivity and make our economy more competitive and a more attractive investment destination. It deserves immediate attention and cannot be another report to government left on the shelf to gather dust," said Innes Willox, Chief Executive of the national employer association, Australian Industry Group.
"The Productivity Commission's five areas of priority reforms is a signal we all need to work together to boost our dismal productivity performance. Without lifting productivity we have no clear path to better living standards, higher wages and improved business competitiveness.
"While the Productivity Commission has raised many important ideas, the proposal to introduce a new net cash flow tax on Australian businesses should be immediately ruled out. The proposal fails to materially improve our investment competitiveness, while making an overly complicated corporate tax system even more complex and increasing the tax burden on businesses who desperately need relief.
"We welcome the report's recognition of the importance of tax simplification, and that a broader suite of reforms might fruitfully be advanced. There are more than 100 different taxes on Australian businesses – a dizzying number which is in dire need of rationalisation.
"A whole-of-system review and simplification of business taxes remains the best way to augment investment and productivity.
"We agree we need a better understanding of the collective impact of regulation and an acknowledgement that no one is currently monitoring either the quantum or the cumulative impact.
"The pragmatic and future-focused recommendations on AI regulation, copyright and outcomes-centred privacy rules strike the right balance between consumer safety and encouraging business investment.
"A new national regulator and worker registration scheme for all elements of the care economy will be crucial to address gaps in care quality and ensuring that the sector can operate efficiently within the available budget envelope.
"The recommendations to build a skilled and adaptable workforce, including through supporting work-related training in SMEs, improving credit transfer and Recognition of Prior Learning and ensuring fit-for-purpose Occupational Entry Regulations are welcomed. Many of them align closely with the suggestions we made to the PC during the Inquiry and they should be implemented with urgency.
"We agree that that a training levy on businesses should not be contemplated – it has been tried in the past and failed. Employers are stepping up, with the number of employees doing work-related training fully sponsored by their employer at the highest level in more than a decade.
"Getting more energy infrastructure built faster is vital, and more coordinated and mission-oriented behaviour from government and regulators should help as we adapt to the challenge of climate change.
"Given that much more emissions reduction will be sought over the coming decade, we need the tools to unlock abatement across more of the economy, while limiting the overall cost.
"We stand ready to work with government and other partners to do what Australians and businesses need – drive productivity and see the benefits flow through wages and improvements to our way of life.
"The Productivity Commission's work needs detailed and urgent follow up to drive broader and vital economic reform. To miss this opportunity to reboot our economic settings would be a travesty," Mr Willox said.
Media Enquiries:
Gemma Daley – 0418 148 821
