Statement by AMMA Chief Executive Steve Knott
Australia’s resource industry welcomes the Turnbull Government laying out a roadmap to bring Australia’s company tax rate into line with the OECD average.
While immediate support for small and medium businesses will provide junior miners, explorers and suppliers to the resource industry with welcome tax relief, the 10-year plan to have a 25 per cent company tax rate across the board will provide a great boost for investment in new major resource projects.
The resource industry is in the business of long term planning and development, with multi-billion dollars investment decisions often having lead times of more than 10-years. Thus, certainty and stability is critical for Australia’s resource industry to remain a globally competitive place to invest, employ and do business.
AMMA urges the opposition to take a bi-partisan approach to company tax reform; one that will see both major parties commit to the 25 per cent target within 10 years whether in government or opposition.
These important budget measures must be complemented by other reforms that maximise the proportion of Australians in jobs, paying tax and generating growth.
Australia cannot allow our unbalanced, increasingly uncompetitive workplace relations system to remain in a holding pattern, creating barriers to jobs and growth.
The next Australian Government must tackle the growing imperative for workplace relations reform. Implementing key recommendations from the Productivity Commission’s review of our workplace relations framework would be a very positive starting point.