Wesfarmers demands 20% investment allowance

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Wesfarmers CEO Rob Scott has called for the immediate introduction of a 20% investment allowance for businesses in order to create jobs and boost investment in response to the COVID-19 pandemic.

Scott has also urged the national cabinet to pursue long-term tax reform, including changes to the goods and services tax. Scott argues that much of the blame for Australia’s slowing jobs growth and declining investment can be attributed to the tax system:

“We cannot pin all of Australia’s slow jobs growth and falling investment on our tax system, but it is much to blame. We need a cutting edge, competitive tax system that is better suited to 2020, not 1999 when it was last reformed — almost a decade before the first iPhone was released”…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.