(Australian Associated Press)
Company directors urgently want tax reform, including a lift in the GST.
The Australian Institute of Company Directors’ bi-annual Director Sentiment Index shows that 82 per cent of directors want the GST to be raised or broadened, or both.
They also want changes to personal income tax and multinational tax arrangements in a comprehensive tax reform package.
“We call on the government to produce a detailed analysis of viable tax reform options that can be properly debated by the opposition and other stakeholders so the best outcome is achieved to the benefit of all Australians,” AICD chief executive John Brogden said on Wednesday.
Mr Brogden said tax reform and a detailed infrastructure plan should be the top priorities for the government in the next three to six months.
The tax system ranked as the third biggest economic challenge to business after global economic uncertainty and low productivity growth.
Almost 90 per cent of directors believe that the government is not spending enough on infrastructure.
The AICD’s Director Sentiment Index indicated that the federal government is in a strong position to pursue reforms.
The index showed that the sentiment of directors improved 9.6 points over the past six months.
The rise reverses a steady decline over the past two years.
The AICD says 46 per cent of directors believe that the federal government understands business – up from 24 per cent.
The proportion of directors who believe the government’s performance has hurt business decision-making has almost halved.
The survey was conducted between October 6 and November 18, attracting 521 responses.