Industry-Innovation-and-Competitiveness-Agenda

whether coverage by a single national scheme may be more competitive than their existing
coverage under multiple schemes.
Proposal 4: Streamline construction regulation
Local government variations in building and construction regulation are creating
inefficiencies and adversely impacting the operations of businesses. This particularly
affects small businesses, which make up 98 per cent of building and construction firms
(ABS, 2013a). Local government regulation in excess of the National Construction Code
(NCC) is a longstanding issue, acknowledged across jurisdictions, but has not been
satisfactorily resolved.
Acknowledging the Commonwealth does not have Constitutional responsibility for this
policy area, we will encourage States to improve consistency in construction regulation
at a local level where there are variations that override requirements of the NCC to
streamline construction regulation and reduce building costs. We will seek to accelerate
the conversation on this issue between State and local governments.
Following consultation with planning and local government ministers, State government
Building Ministers will report back to the Building Ministers Forum in 2015.
Reducing the burden of taxation
The Government wants taxes that are lower, simpler and fairer. While some early reforms have
been undertaken, the Government will set out our plan for ongoing reforms in the White Paper
on the Reform of Australia’s Tax System.
Australian governments rely on tax revenue to fund the public investment and services our
economy and society depend on, but taxes impose direct and indirect costs on businesses and
individuals. Beyond their direct impact, taxes may also reduce the incentive to save, invest
and produce. KPMG estimates that for every $1 collected through company tax, more than
23 cents of value is lost to the economy (KPMG, 2010). Although dividend imputation reduces
the burden of company tax in Australia for domestic shareholders, at 30 per cent our company
tax rate is high by international standards (Chart 10). The OECD has suggested that the Australian
economy would benefit from a shift toward less mobile and distorting tax bases (OECD, 2010b).
This is because Australia is more reliant on corporate and personal income tax than the OECD
average (OECD, 2014e). The States also rely on a number of more economically damaging taxes,
particularly transaction taxes (stamp duties applied to insurance and property) which distort
incentives for individuals and business to purchase insurance products or move locations.
Industry Innovation and Competitiveness Agenda
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