TAXATION AND THE ECONOMY: A BUSINESS VIEW ON SOME IMPORTANT ISSUES

Australia is facing major economic problems. The overseas debt is uncomfortably high and we, like other countries, are having to face up to problems associated with the ageing of our population.
To overcome these problems we need to save through superannuation and otherwise. Furthermore, we need to encourage further development of overseas operations by Australian companies and remove existing constraints.
Taxation plays an important role. A consumption tax/income tax trade-off warrants thorough investigation. The benefits appear significant.
We should avoid unnecessary restrictions on business activities as complexities lead to inefficiencies. We should seek to clarify and hopefully simplify the taxation code; a major review of the Income Tax Assessment Act would seem in order.