The state’s peak business organisation, the NSW Business Chamber, says action is needed to encourage business investment and there is a strong case to target tax relief for businesses that invest and create jobs in their communities.
“Treasurer Josh Frydenberg has made it clear that our focus needs to be on encouraging business investment to improve productivity growth in Australia,” said NSW Business Chamber Chief Executive Stephen Cartwright.
“The best way to do this is for the Government to make it easier for businesses to back themselves, including by expanding investment allowances that encourage new investment,” Mr Cartwright said.
“Earlier this year the Chamber called on the Government to build on the successful instant asset write-off by making it easier for businesses of all sizes to expand and boost their local economies.
“It is important that we have tax settings that encourage new investment, as new capital is vital to driving productivity growth and, in turn, the future economic prosperity of Australia.
“Capital deepening means more jobs and higher-paying ones too.”
“While high rates of company tax impede business investment, well-designed policies can ensure tax relief is targeted to encourage additional investment.
“Apart from generating productivity growth, it would also provide a boost to the economy at a time of increasing global economic uncertainty.
“We know from experience that well-designed tax policies can boost economic growth and employment, with payroll tax cuts in NSW preceding the creation of more than 160,000 new jobs in NSW over the past year alone,” Mr Cartwright said.