Directors want GST reform: AICD

Directors have indicated their support for reform to the GST, including an increase in its rate, and raised concerns that public policy debate in Australia was of poor quality, in a survey conducted by the Australian Institute of Company Directors.

The Director Sentiment Index, which measures the future intentions of directors of Australian businesses, found that 78 per cent of directors believed the GST should be increased and/or broadened, and that reform was a top priority for any comprehensive review of the taxation system.

“The results are a telling indication of the desire for change as our members come from all parts of the community, not just business,” AICD chief executive John Brogden said.

“However, the survey also highlights a widespread fear that a hostile Senate is a barrier to significant reform of any kind.”

In all, 35 per cent of the respondents said the government’s priority for next week’s federal budget should be increasing long-term revenue by restructuring the tax system, while 37 per cent of directors believe the government should aim to achieve a budget surplus within the next five years.

“A remarkable 85 per cent of respondents to our survey rated the quality of current public policy debate as poor,” Mr Brogden said.

About 90 per cent of directors believed government spending on infrastructure was too low, with over 70 per cent believing the government should pursue industrial relations reform.

Almost 70 per cent expected the domestic economy to be weak over the next 12 months.