The head of the Business Council of Australia believes nothing will stimulate innovation more than a tax rate cut for all businesses.
Council president Catherine Livingstone also says if there is no economic growth dividend from tax reform, it will be a missed opportunity.
"We run the risk of undertaking a tax mix change that simply underwrites increased (public) spending," she told the council's annual dinner in Sydney on Thursday.
"This is not the path to sustained economic growth and prosperity."
But just as a reduction in the company tax rate is essential in driving a more innovation-capable economy, so too are specific tax measures such as employee share schemes, tax incentives for start-ups, and the continuity of the R&D tax incentives for businesses, she says.
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Ms Livingstone also talked up the effect of Malcolm Turnbull being elevated to prime minister, saying the impact on national sentiment has been "almost unparalleled".
She noted that one of Mr Turnbull's first actions as prime minister was to reconvene the participants of a national reform summit that was held in August to build on areas of agreement and to work through points of difference.
"This early initiative has galvanised the positive sentiment," she said.
