Australian Industry Group (AIG) chief, Innes Willox, has called on the Morrison Government to implement a Labor-style investment allowance to spur business investment:
…we propose the introduction of a generous investment allowance to bring forward and increase business investment. It would allow businesses to deduct for tax purposes a larger proportion of their expenditure on capital equipment in the year of purchase rather than wait until later years to claw back the expenditure.
This simple measure would supercharge the engine room of the economy. It would help address our stagnant productivity growth, it would provide a welcome boost to job creation and it would stimulate a large cross-section of suppliers of machinery, equipment, materials and associated service industries…
