Association argues for higher consumption taxes to boost Australian productivity
Australia’s peak broking association has urged the Federal Government to commit to sweeping tax reforms in order to strengthen the country’s economy.
The Mortgage & Finance Association of Australia (MFAA), which recently exceeded 16,000 members, outlined its wishlist ahead of the Economic Reform Roundtable in Canberra.
The MFAA’s submission calls for raising the GST to 15% (the current 10% rate has been unchanged since 2000) and expanding its reach to previously exempt goods and services, including fresh food, health, and education.
It also wants to see stamp duty and payroll taxes abolished, and is pushing for the instant asset write-off scheme to become a permanent fixture for businesses.
“A higher and broadened GST will deliver greater revenues to the states and territories as distributed by the Commonwealth Grants Commission,” read the MFAA submission. “This would boost state and territory revenues and support them to phase out inefficient taxes, such as stamp duty, without compromising service delivery.”
Removing stamp duty would make housing more attainable for first-home buyers, argued the MFAA.
It is calling for payroll tax to be “modernised”, as it “is inefficient and places a high administrative burden on small businesses”. Payroll tax is also contributing to the housing crisis, the MFAA added.
“We acknowledge that these reforms we have proposed are bold,” said MFAA chief executive Anja Pannek (pictured) in the submission. “However, this government has both a mandate and a unique opportunity to deliver genuinely transformational productivity lift… We encourage the Labor Government to seize this moment to lay the foundations for a more productive, equitable and resilient Australia.”
The Economic Reform Roundtable will be hosted by Labor Treasurer Jim Chalmers between 19-21 August.
“We have more than 16,000 members, representing almost three-quarters of mortgage and finance brokers in Australia, so it’s essential that the MFAA is part of the national conversation when it comes to economic reform,” Pannek said.
“Our broker members see the direct effects of constrained housing supply, inefficient taxes and policy settings. These result in placing barriers around financial mobility, productivity growth and participation in the economy.”
