The Australian Institute of Company Directors (AICD) today backed the call for an increase in the GST rate made by NSW Premier Mike Baird and urged other State leaders to support the move.
“We call on Federal and State leaders attending this week’s retreat to set an agenda for change that will better position Australia to meet the economic and social challenges it will face in the decades ahead,” said John Brogden, the AICD’s Managing Director and Chief Executive Officer.
“Tax reform is unfinished business in Australia. Governments need to listen to the broad cross section of the Australian community calling for a broader, fairer tax regime.
“The AICD supports a higher rate and broader base for the GST offset by tax reform across the States and Commonwealth,” Mr Brogden said.
Almost 80 per cent of AICD members supported a change to the GST system in a survey that it carried out in April this year.
“The findings indicated that directors believe that GST reform is the top priority for any comprehensive review of the taxation system,” said Mr Brogden.
“The results are a telling indication of the desire for change as our members come from all parts of the community, not just business. A large proportion of our members are directors of not-for-profit organisations,” Mr Brogden said.
The bi-annual Director Sentiment Index found that 30 per cent of directors believe that the rate of GST should be increased and that the GST base should also be broadened. Another 30 per cent believe that an increase in the GST rate is required but that it’s unnecessary to also broaden the base of the tax.
An additional 18 per cent believe that the GST base should be broadened without an increase in its current rate of 10 per cent.
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