More than 30 leading Australian business groups and industry associations are urging all MPs and Senators to reject the federal government’s proposed changes to capital gains tax (CGT).
In a joint letter to all MPs and Senators, the Australian Chamber of Commerce and Industry (ACCI), alongside all state and territory chambers of commerce and 26 major industry associations, warns the changes would deter investment in businesses and weaken economic activity in communities across the country.
ACCI Chief Executive Officer Andrew McKellar said the scale of support for the letter reflected deep and widespread concern across the business community.
“The federal government still has time to pull the pin on its business taxing agenda,” Mr McKellar said.
“Imposing large new taxes on investment in business will of course see a reduction in investment in Australian businesses, with subsequent impacts on growth, innovation and jobs.
“The federal government said its priority was lifting productivity, but it has completely undermined this objective with these CGT changes.”
Mr McKellar said the government’s decision to expand eligibility for the active asset CGT concession would soften the impact for some small businesses, but leaves the core problem unresolved.
“The federal government is trying to ameliorate the damage of these CGT changes, but we say why damage the business community at all?” Mr McKellar said.
“The government is still yet to explain why they are targeting the business community with this new tax.
“Economic growth is already anaemic and productivity is lagging. These changes will drag both down even further, and businesses will feel the impacts of this.
“The Australian business community is supportive of tax reform that genuinely encourages investment and lifts productivity, but this is the opposite of that.”
Read the joint letter
Letter signatories