Start of COAG discussion welcome don t forget some fundamentals

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Start of COAG discussion welcome, don’t forget some fundamentalsThe Property Council of Australia welcomes the first steps taken by our First Ministers towards major reform of Australia’s Federation after the special COAG leaders’ summit in Sydney while reminding leaders not to forget some fundamental objectives of reform.Property Council chief executive Ken Morrison said yesterday’s discussions are an encouraging first step.”We welcome the fact that the conversation has started and that key reform options remain on the table. We also appreciate that finding solutions to difficult problems takes some time,” Mr Morrison said.”The public will rightly expect some clear actions on these difficult issues, including helping to grow prosperity across the community.”Our leaders need to remember that growing the economy is a fundamental objective of tax reform, not just looking for new ways to increase overall tax revenue.”Having a mix of taxes that relies less on highly inefficient taxes like stamp duty will boost the economy and raise more revenue for governments.”Achieving this double benefit means taking aim squarely at our growth-distorting taxes and finding a pathway to abolish them.” Yesterday the Property Council of Australia released a comprehensive report by ACIL Allen Consulting Modernising Australia’s Tax System* modelling tax reform plans showing the national economy could be up to $10 billion better off every year and still raise more revenue for governments if Australia relied on a better mix of taxes.The new modelling shows GST reform could fund the abolition of stamp duty and other inefficient taxes to boost the economy.The Property Council of Australia also welcomed the priority given to housing and infrastructure issues at yesterday’s retreat.”Focusing on housing affordability means fixing supply and this is a central challenge for all Australian governments,” Mr Morrison said.”Getting the supply of housing right will ease affordability pressures and boost housing construction to keep the economy strong.”It was pleasing to see Social Security Minister Scott Morrison float a number of potential initiatives in this space in a major speech he gave yesterday.”*The ACIL Allen Consulting report Modernising Australia’s Tax System is available at www.propertycouncil.com.au.Media contact: Matt Cross | M 0402 155 372 | E [email protected]