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Finance Business Service

Australia needs tax reform

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Business center: Australia

James Pearson, the CEO of the Australian chamber of commerce and the industry (ACCI) told that the country "needs tax reform on a wide basis, but not gradual approach for the purpose of stimulation of economic growth".

The real gross internal product (GIP) as predict, grows for two percent in 2016-17, and for 2.75 percent in 2017-18. The main cash deficit as expect, will fall from 2.1 percent of GDP in 2016-17 to 0.5 percent in 2019-20. The net debt as it is supposed, will reach a maximum in 19 percent of GDP in 2018-19, and then will decrease for the medium-term period approximately to 10 percent. The size on recovery of the budget that took place from a general election in May, costs more than 22 billion Australian dollars (16 billion US dollars).

The treasurer Scott Morrison told that for maintenance of economic growth, the government will continue to perform the plan for workplaces and growth that will allow to raise level of living and will support a profit increase. He told that the government remains careful in taxation by high taxes of the Australian economy on the ground that it limits growth and therefore the income. This assumption provides to the government flexibility to adapt tax policy in the future, and also to make the tax plan of the entity, without influencing a medium-term provision.

Reacting to the announcement, Pearson told that Morrison "fairly avoided a temptation to reach shattering economy of growth of taxes to improve the budget result". He emphasized that "Australia must make everything that it can to receive the budget" and can't rely

Author: Olena Kutova

senior lawyer of the Finance Business Service company

Сергей Панов
Author
managing partner
Finance Business Service