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The middle market is a vital but often overlooked part of Australia’s economy, according to mid-tier firm Pitcher Partners.
Speaking on Malcolm Turnbull’s ascension to the Prime ministership, John Brazzale, managing partner at Pitcher Partners, noted that the leadership change offered a chance to focus on tax reform to address the middle market.
“Tax reform to date has mistakenly focused on ‘small taxpayers’ rather than ‘privately-owned groups’ which employ more people than all the public companies in Australia put together, and contribute well over one-third of total corporate tax revenue,” Mr Brazzale noted.
Mr Brazzale added that the current state of the tax system is riddled with a “complex web of rules and interactions.”
“Such complexity is holding the middle market back and damaging our economy,” he said.
Calling on newly appointed assistant treasurer and minister for small business Kelly O’Dwyer, Mr Brazzale stressed that Ms O’Dwyer “needs to ensure that tax reform provides carve outs for the middle market”.
“The government must facilitate middle market’s ability to invest and employ people with reduction on red tape compliance costs, and making it overall easier for small business to do business,” he added.
Mr Brazzale concluded by noting that “nothing should be off the table, including GST,” when it comes to future tax reform.
“The government has got some work to do in reinvigorating business confidence, defining a clear vision and how it wants to position Australia.”