GDP to expand by 4.5 per cent this year before slowing to 2.8 per cent in 2022.
In its annual “Going for Growth” report, the OECD said the pandemic had taken a particularly heavy toll on young businesses and highlighted existing education inequalities.“The recovery brings an opportunity to boost innovation and re-allocation, necessary to face the challenges of digitalisation and meet climate change targets in a cost-efficient way,” it said.
To boost both, it said the nation’s tax mix should move away from “heavy” reliance on income to ones that targeted consumption and land values.It urged the Morrison government to cut the company tax rate on the nation’s largest firms, currently at 30 per cent, and align it with those for small and medium-sized businesses. It warned the difference between the two rates risked “distorting how firms are structured and how they behave around the threshold between the two rates”.
Drought and catastrophic fires were signs that Australia needed to do more to deal with climate change, according to the OECD.A GST hike should also be considered, with low and middle-income earners compensated for the higher impost.