Lower Company Tax, Boost Tolls To Help Economy: Accountants

11 Jul 2013

Australia’s political leaders need to improve financial literacy through schools, lower the company tax rate, roll out tolls on infrastructure and boost the Productivity Commissioner’s powers in order to tackle the coming economic challenges, The Institute of Chartered Accountants has said.

In its report titled ‘future[inc]: An economic Policy Platform for the Next Term of Government’ the institute says Australia faces challenges including an ageing population and slowing productivity growth against the backdrop of economic uncertainty.

The report was released as Prime Minister Kevin Rudd prepared to appear at the National Press Club on Thursday in his first major speech since being reinstated to the Labor leadership on June 26.

The speech will centre on Australia’s economic performance and how it has outperformed other developed nations. It comes after Mr Rudd has spoken about the possible impact of deteriorating economic conditions in China unless Australia manages it carefully.

The institute’s chief executive Lee White said: “We cannot afford to get distracted by the politics of the day.

“What matters is that both major parties properly engage the Australian public on what steps they will take to make our economy more resilient and productive.”

The report focuses on recommendations around fiscal sustainability, international best practice, boosting productivity and the stability of financial markets.

Recommendations include giving greater emphasis to financial literacy in the national school curriculum, lowering the company tax rate, adopting a ‘user pays’ system for infrastructure investments and giving the chair of the Productivity Commission the ability to present priorities to parliament annually.

Source: http://www.afr.com/p/australia2-0/lower_company_tax_boost_tolls_to_bgUmayAUPJve4KKlMdPmJO