The Australian government should raise the goods and services tax and cut other taxes if it wants to boost the Australian economy, according to the chief executive of the Commonwealth Bank.
Speaking with Fairfax, after the bank posted a record $9 billion profit, Ian Narev said raising the GST and cutting other taxes at the same time should be considered if the Australian economy is to receive a much-needed helping hand.
“Now there is no doubt the combination of an increase in GST and a reduction in corporate tax, from the point of view of how it looks to stimulate business investment that would be a net positive thing,” Narev said.
“Instinctively, it is really worth looking at – it certainly needs a really good look. If you increase the GST and reduce corporate tax, you are undoubtedly going to stimulate some business investment. That is a clear phenomenon.
“If the only lens is what is going to stimulate business, that combination undoubtedly works.”
Business owners whose first language isn’t English will soon receive more help and guidance from the employer watchdog following a string of underpayment cases in multicultural communities.
The Fair Work Ombudsman launched a new program yesterday that will see community engagement officers help business owners as well as overseas workers better understand their rights and obligations under Australian law.
Earlier this week the owner of a Malaysian restaurant in Perth was stung with an on-the-spot fine and an enforceable undertaking because he was not aware of his obligations.
Fair Work Ombudsman Natalie James said the employer watchdog will reach out to various leaders in multicultural communities to spread the word about correct pay and penalty rates.
“By engaging with intermediaries and networks that these communities already use and trust, we hope to increase their awareness about their workplace rights and responsibilities,” James said.
Aussie shares were once again trading slightly higher this morning, off the back of a positive showing from Wall Street.
Tristan K’Nell, head of trading for Quay Equities, said the Australian share market is ending the week on a flat note.
“Market Turnover into lunch was $1.16 billion. Turnover was never going to be strong with a large partition of the market offline with CBA again in trading halt. A limited day of economic releases and a quieter day of earnings is also likely to see investors on the sidelines to end the week.”
The S&P/ASX200 benchmark was up 0.2%, rising 11 points to 5398.9 points at 11.22am AEST. On Thursday, the Dow Jones closed up 0.03 points, rising 5.74% to 17,408.25 points.
Broede Carmody is a former senior SmartCompany reporter. Before this, he was a co-editor of RMIT University’s student magazine Catalyst.
