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Government must act on Capital Gains Tax reform and decline in expenditure on R&D.



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Media Release

BOB McMULLAN MP

SHADOW MINISTER FOR INDUSTRY AND TECHNOLOGY MANAGER OF OPPOSITION BUSINESS

MEMBER FOR FRASER

 

16 June 1999

IND23/99

 

GOVERNMENT MUST ACT ON CAPITAL GAINS TAX REFORM AND DECLINE IN EXPENDITURE ON R&D

 

The Shadow Minister for Industry and Technology, Bob McMullan, said, last night, that the Howard Government is letting industry down by not addressing major issues such as Capital Gains Tax reform and the continuing decline in expenditure on research and development.

 

“I am concerned that the Government is dragging its feet on Capital Gains Tax reform and the decline in public and private expenditure on research and development,” Mr McMullan said.

 

Mr McMullan was speaking at a CEO Reception of the Australia—Israel Chamber of Commerce in Sydney last night.

 

“As I to talk to industry I consistently hear calls for reform to the Capital Gains Tax treatment of billions of dollars of potential investment from US pension funds.

 

“If Australia is to take advantage of the industries of the future and become a high-wage, high- skill country, then this investment is essential.

 

“Industry is also calling for the Research and Development Tax Concession to be returned to 150 per cent.

 

“Business Expenditure on Research and Development plummeted again in the second year since the Government cut the R&D Tax Concession from 150% to 125%.

 

“On top of this the Government is discussing cutting the R&D Tax Concession by another one sixth by lowering the Corporate Tax rate to 30 per cent.

 

“There is no need for the Government to wait for the Ralph Report into business taxation in relation to these matters.

 

“If the Government is prepared to act now on these issues, any reasonable propositions would have bi-partisan support and quickly pass through the Parliament,” Mr McMullan said.

 

Further information: Tim Benson, (02) 6277 4803 or 0413 525 748

 

 

cm  1999-06-17  10:49