Tax treaty under negotiation between Australia and Israel
Stimulating growth, rather than increasing taxes, is the solution to the budget deficit, said the Federal Treasurer in a public address in Melbourne on Friday.
Scott Morrison
The Hon Scott Morrison MP delivered the second in a three-part series of speeches titled “Staying the Course,” at an Australia-Israel Chamber of Commerce (AICC) Luncheon in front of an audience of 450 at the Grand Hyatt Melbourne.
The Treasurer outlined growth as key to Australia’s preparation for a new generation of growth and prosperity, as the economy transitions from the mining investment boom to a more diversified economy.
Although Australia had experienced 25 years of consecutive annual GDP growth, there was no room for complacency, Mr Morrison stated. Staying the course would necessitate arresting debt, strengthening our banking and financial systems and restoring the budget to balance.
“Today we must focus on the challenge of increasing what we earn… We are not feeling better off because growth in income is weak.”
“This does not mean we have a revenue problem; higher taxes are not a solution,” he emphasised. “Dealing with our expenditure problem is.”
The Treasurer went on to say that economic policy should focus on lifting the levels of private investment in the economy, boosting trade and investment, and creating jobs for stronger growth.
As part of the above, Mr Morrison announced – to a round of applause – that the Turnbull government would be reducing barriers to trade with Israel.
“The government has now formally commenced negotiations with Israel on a tax treaty that will improve trade and investment by removing tax barriers for business, which I’m hopeful will be included in the first half of next year,” he said.
The Treasurer concluded his address by saying that he had only shared a portion of the Government’s plans to deliver growth to set the country up for the next 25 years.
