The call from Industry Minister Ed Husic for a new discussion about corporate tax rates is a welcome development, the Australian Chamber of Commerce and Industry said today.

“Australian businesses will embrace the need to reconsider corporate taxes. Lowering the corporate tax rate or introducing investment allowances are critical measures that can drive business investment, spur economic growth and ultimately benefit all Australians,” ACCI chief executive officer Andrew McKellar said.

“Businesses need the ability to free up capital and invest, especially given the sluggish productivity growth over much of the past decade.

Corporate tax reform or investment allowances would incentivise businesses to upgrade technology, enhance productivity and create jobs.

“Ensuring that businesses can invest in growth while also improving wages on the back of productivity gains and job security is the right approach.

“ACCI looks forward to engaging constructively with the government on this crucial issue and we thank the government for raising it. An approach that enhances productivity and ensures sustainable economic growth would be a win-win for all Australians.”