The Australian government is being called upon to slash company tax rates in the country from their current rate of 30 per cent.
The Business Council of Australia (BCA) wants prime minister Malcolm Turnbull to take action to bring the nation's business tax rates in line with those of the rest of the world, as Australia's have now remained unchanged for 16 years.
Mr Turnbull has already tried to introduce a ten-year reduction on company tax rates. While his government has successfully passed this for small businesses, all other proposals have stalled in the Senate, with the Australian Labour Party standing against the Turnbull administration's plans thus far.
Campaigners for the cause believe that slashing the country's corporate tax rates will help to increase its competitiveness, attracting new investors down under to provide a boost to the nation's economy.
Figures from the Organisation for Economic Co-operation and Development (OECD) show that the average business tax rate across OECD countries is 24 per cent, meaning the rate in Australia is significantly above the average. Across Asia, the median rate is even lower, coming in at 21 per cent.
Chief of the BCA Jennifer Westacott explained: "Australia currently has the fifth highest company tax rate in the OECD and it will be third highest once the USA and France deliver on their pledges to slash their company tax rates.
"This global action should be a wake-up call for the Senate that Australia cannot afford to stand still, since every company tax reduction overseas is a de facto tax increase on Australia."
She added that even if the government does vote to lower the nation's business tax rate to the suggested 25 per cent, this could take a decade to be rolled out, meaning a decision needs to be made as soon as possible.
What's more, this will still leave Australia's corporate tax rate above the OECD average, so these proposals need some serious consideration to ensure the best possible outcome for the country is achieved.
