Henry Tax Review cause for caution says Printing Industries

Printing Industries has welcomed the release of this week's Federal Government’s response to the Henry Tax Review Report but remains sceptical about its impact on business.

CEO of Printing Industries, Philip Andersen, said it was positive that the government had taken the first step in the tax reform process but cautioned on any real benefits flowing to business for several years. “There are real concerns that many of the proposals that could benefit business development, such as the reduction in company tax and the simplification of the tax system are many years away,” he said.

“The government has only endorsed a handful of the 138 recommendations as it faces an election in less than 12 months and will want to play safe until after that result.

“On the other hand it does provide an opportunity for us to try to convince the government to adequately consider the impacts on business of what they have endorsed, for example with the proposed increase of the superannuation guarantee charge.

Andersen said that in its current form, the proposal would cost business in the vicinity of $24 billion annually for all sectors.

“A far more equitable way for the government to fulfil its objectives in superannuation would be to allow the proposed charge to be implemented as part of a wage trade-off. The Government has flagged this option and Printing Industries will be ensuring that it becomes the policy option of Government,” he said.

Printing Industries national manager for policy and government affairs, Hagop Tchamkertenian, said the Association would be carefully reviewing the current and future proposals as they emerged and would continue to represent its member’s interest to government in the vital area of taxation reform.

“We agree with the Government that tax reform is a long terms process due to its potential impact on government finances. Some measures however such as the proposed reduction in the corporate tax rate whilst having a short term impact on government finances have the potential in the long term to improve those very finances by encouraging economic growth,” he said.

Hagop encouraged the Senate to help pass the pro-business measures as a matter of priority.

“No doubt the Senate will be closely scrutinising the proposed measures announced last Sunday by the Government and it is their imperative to do so. However, the timeframe for the introduction of some of the positive measures which we feel should have been introduced earlier by the Government should not be further delayed.”
 
A summary of the main measures announced as well as the Government’s response to the other recommendations can be downloaded here.

The Henry Tax Review Report can be assessed by clicking here.