In a “back to basics” call, a South East peak group has proposed the halving of the company tax rate for Australian manufacturers ahead of the next Federal Budget.
South East Melbourne Manufacturers Alliance (SEMMA) argues in its pre-Budget submission for a 15 per cent company tax rate – down from the current 30 per cent.
It claims this would address cost pressures and boost the sector’s competitiveness domestically and overseas.
“The need to bolster the Australian manufacturing sector has been repeatedly highlighted by industry commentators for decades,” SEMMA president Peter Angelico said.
“However, the current federal legislative framework does not adequately address this sector’s critical challenges.”
SEMMA argues that a “universal tax advantage” is more efficient than selective grant programs.
It reduces administrative overheads and promotes more equitable distribution of support.
In turn, there would be increased jobs and economic activity – that would ultimately deliver higher tax revenues.
SEMMA also proposes a Government restriction on manufacturing grants, directing them only to Australian-owned companies.
This ensures taxpayer money stays in the domestic economy and promotes national industry resilience, SEMMA argues.
The policies are said to “underpin” SEMMA’s soon-to-be-released Manufacturing Blueprint.
“This policy aligns with a “back-to-basics” economic plan, providing a clear, direct, and equitable approach to supporting Australian manufacturers,” Angelico said.
“It is imperative for the government to prioritize this initiative to secure the long-term health and competitiveness of our manufacturing base.”
SEMMA represents a region touted as Melbourne’s manufacturing heartland, including Greater Dandenong.
Half of Melbourne’s manufacturing jobs are in the South East.
