The Australian Industry Group has advised reductions to both government spending and company tax levels in its submission for the May federal budget.
The Australian reports that the Ai Group describes the current fiscal position as “clearly unsustainable”, and in need of sensible cuts to spending without these being “excessive”.
The lobby group representing 60,000 businesses, including in the manufacturing and engineering industries, said the measured cuts should “recognise the tentative nature” of recovery in non-mining sectors.
"Reducing the company tax rate is the central policy measure that can be taken to lift private-sector investment and increase productivity, real wages and Australian living standards," the group’s submission advises, according to The Australian Financial Review.
It also suggests committing to investments in defence (and leveraging opportunities for businesses to participate in defence global supply chains), investing in STEM, and continuing support for innovation.
There was also a need to lift immigration to 220,000 annually, “both with a strong emphasis on skilled migration and by lifting the Syrian refugee intake”, according to the Ai Group.
To read the budget submission, click here.