HIA hits out at tax review
The Housing Industry Association (HIA) has challenged the recommendations from the Federal Government’s Business Tax Working Group (BTWG), accusing it of ‘missing the mark’ with its proposed changes to the country's business tax system.
“The concept of business being asked to find its own means to fund tax cuts is fundamentally flawed,” said HIA Chief Executive - Industry Policy & Media, Mr Graham Wolfe.
“A tax cut that is revenue neutral is by definition not a cut and will do little to stimulate the economy and drive more jobs.”
Mr Wolfe said the BTWG’s proposed business tax cut would have no positive effect on the majority of small businesses, saying that it has ‘potentially created a real problem of equity’ as the majority of small businesses will not be incorporated by any reduction to the company tax rate.
“HIA is particularly concerned at recommendations which propose limiting interest rate deductibility for business, which would have significant impacts to both home builders and housing investors,” Mr Wolfe said.
“Placing a threshold on business interest deductibility suggests that there is a level of gearing that government considers appropriate, which effectively amounts to a government telling entrepreneurs that it knows how to run a business better than they do.”