Australia has slipped down the World Economic Forum’s league table to be only the 21st most competitive among global economies.
A leading business group is urging both major political parties to commit to policies that make Australia more competitive.
Australia has slipped down the World Economic Forum’s league table to be only the 21st most competitive among global economies, Australian Chamber of Commerce and Industry – ACCI – boss James Pearson says.
‘New Zealand is four or five places ahead of us for goodness sake,’ he told Sky News on Sunday.
Australia was failing in two key areas – tax reform and industrial relations.
Mr Pearson backs the government’s push to bring back the Australian Building and Construction Commission – the key issue that triggered a July 2 double dissolution election – while he believes the Productivity Commission’s review of workplace relations is a good place to start reform.
He also supports a 10-year plan that incrementally cuts the company tax rate to 25%.
The 3 May budget initially broadens the small business turnover threshold from $2 million to $10 million so that more firms can enjoy a tax cut to 27.5%.
At present small business pays a tax rate of 28.5% and larger businesses 30%.
Labor is against tax cuts for bigger business, saying they are not affordable.
‘The economic benefit from a company tax cut flows overwhelmingly to Australian households,’ Mr Pearson said.
‘Stop this sterile debate between small business good, big business bad, and recognise both ends of the business spectrum depend utterly on each other.’
Mr Pearson also supports the proposed changes to superannuation tax concessions on the rich, saying all governments have to make trade-offs so they can fund social programs.
‘The changes make sense because the government has to prepare for the future,’ he said.
He is not surprised the welfare lobby is supporting a new internship program that aims to get young unemployed people into work.
But Mr Pearson struggles to understand why the union movement is against the PaTH program which will provide participants with experience in the workplace.
‘It will do young people nothing but good,’ he said.
AAP
