CCI calls for tax cuts, economic reform

02/02/2009 - 08:41

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The Chamber of Commerce and Industry of Western Australia today called for economic reform that will support local firms, encourage new investment and create jobs during the deepening global financial crisis.

CCI calls for tax cuts, economic reform

The Chamber of Commerce and Industry of Western Australia today called for economic reform that will support local firms, encourage new investment and create jobs during the deepening global financial crisis.

Chief executive of the state's peak business organisation, James Pearson, believes the government can best assist the economy, and business, by providing meaningful tax relief and greater investment in wealth creating infrastructure.

"Governments have placed a premium on job creation and job security during this period of economic uncertainty," he said.

"Government can work with business to achieve this task by removing unnecessary barriers to business growth.

"Tax relief will provide a direct boost to business, and Western Australia's importance to the Nation's future prosperity must be reflected in the provision of essential infrastructure to build capacity in the local economy, and encourage sustainable growth for many years to come."

Mr Pearson said federal and state government support for appropriate infrastructure, such as roads, ports, and railways, was important to attracting new investment to the state, and supporting WA's ability to remain the key economic driver of the nation.

"The state government's top tax priority must be cutting payroll tax, as it is a tax on jobs and a significant financial impost on a growing number of firms, especially small and medium enterprises," he said.

Western Australia recently became the highest payroll taxing state in Australia with the government's take from payroll tax more than doubling from $833 million in 2001 to nearly $2 billion in 2008.

Mr Pearson said the federal government also had a crucial role in supporting business and the local economy, through tax reform.

"The need to strengthen and streamline Australia's tax system has never been greater as countries across the world try to minimise the impacts of the current downturn by stimulating their economies," he said.

In its recent submission to the federal government's taxation review CCIWA called for personal income taxes to be reduced by aligning the top marginal tax rate to the 30 per cent corporate tax rate.

"Getting the tax structure right is an important and constructive reform that governments can make, to encourage individual enterprise, increase productivity and promote competition in business," Mr Pearson said.

"Now is the time for government at all levels to work with business and industry to develop sound and responsible policies that will promote jobs growth, business investment and wealth creation.

"Free enterprise has made Australia one of the world's leading and best performing industrialised economies. Economic reforms over many years have enabled Australians to capitalise on the good times, and help to insulate the country at times of uncertainty."

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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