Tax and Compliance Issues Remain A Concern For Australia’s Businesses

by Mary Swire, Tax-News.com, Hong Kong

28 June 2004

Further tax reform remains the number one issue for businesses in the lead up to Australia's forthcoming general election, according to the findings of a major survey announced in Canberra last week.

The survey, compiled by Australian Business Ltd, found that respondents were most concerned about high rates of taxation, complexity and compliance issues which seem to persist despite recent reforms of the tax system by the present government.

Nine out of ten of those polled rated the level of taxation as a major or moderate concern and 87% rated the complexity of the tax system as of concern.

"Although tax is the biggest issue, while we have momentum, optimism and a solid foundation of economic activity, both Government and business should be focusing on a broad range of policy initiatives to grow the economy and living standards over the next decade,” observed Mark Bethwaite, ABL’s managing director.

As a result of the Business Priorities 2004 study, which canvassed the opinions of 675 business decision makers across a broad range of industries from across New South Wales and the Australian Capital Territory, ABL formulated a number of priorities for the federal government to address.

These included further reform of the taxation system and streamlining compliance and regulation.

"Business growth and sustainability will result from reduced regulatory requirements, increased interaction with global markets and business innovation. From this flows job opportunities and the drive for increased knowledge and workplace skills," added Mr Bethwaite.

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