A major industry group has put forward an 11th-hour proposal to try and end the political impasse over the Turnbull government's 10-year tax plan as the Senate starts to debate the legislation.
In its 2017/18 budget submission, the Australian Industry Group wants the parliament to support the initial stages of the tax reduction schedule so that by 2019/20 all companies with turnovers below $100 million pay a corporate tax rate of 27.5 per cent.
"We have also suggested that the case to extend the 27.5 per cent rate to larger companies and to reduce the company tax rate to 25 per cent be re-prosecuted by the government and others ahead of the next election," Ai Group chief executive Innes Willox says.
If successful at the next election, the government could re-present the remainder of the plan in a broader reappraisal of Australia's tax arrangements, he says.
Among its other budget wishes, the group wants "greater and smarter" investment in education and training of the current and future workforce.
It also wants active development of Australia's innovation and business capabilities, and a clear trajectory to budget sustainability while facilitating new infrastructure investment.
"We need to shape up," Mr Willox says.
"Not only in lifting productivity and competitiveness but also we need to shape up in building an inclusive approach towards these objectives so that the benefits of successful engagement in the global economy are broadly available for all Australians."
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