New Business Council of Australia head, Grant King, has slammed attempts to link the issue of company tax cuts with the recent cuts in weekend penalty rates.
"To suggest that a reduction in the corporate tax rate to maintain a competitive investment environment should be rejected because an independent commission has determined to reduce penalty rates, is the basest of political arguments and should be called out as such," Mr King said on Friday.
"Both of those things have the same objective, and that is to get more people to work."
In his first major speech since being elected president of the Business Council of Australia, the former Origin Energy chief executive warned populist policies would be damaging and repeated calls for an overhaul of the tax system to maintain international competitiveness.
"If our parliaments follow the populist path and put the short-term wants of the few ahead of the long term needs of the many, then the crisis will eventually come," Mr King said in a speech to the Australia Israel Chamber of Commerce.
His comments came as the federal government's $50 billion, 10-year corporate tax cut package remains stranded in parliament, with Prime Minister Malcolm Turnbull's Coalition unable to secure support in the Senate for the bill.
Mr King said the BCA called for a comprehensive tax system review in its federal budget submission but, with the political will for this absent, would argue for cuts in the corporate and personal income tax rates.
"We know that business investment drives productivity growth, which in turn is the greatest driver of income growth. Meaningful jobs and income growth are the outcomes Australians most highly value," he said.
The business lobby also wants a reduced regulatory burden, including streamlining of project approvals and limiting grounds for appealing against them.
Mr King also indicated that BCA's lobbying approach will change, with the move following past criticism the group has not advocated strongly enough on policy proposals that it supports.
"In the two-party system, we believed quiet advocacy in Canberra was the best option. But that has changed. We need to be talking directly to the community and we will do that a lot more," he said.
Earlier this week, the country's top business leaders, led by the BCA, went to Canberra to urge the opposition Labor Party and crossbenchers to get behind cuts to government-advocated corporate tax cuts.
