Business groups warn of tax and compliance burdens in Australia and EU

In Australia, the Business Council of Australia (BCA) has issued a warning regarding the federal government's budget savings package. The BCA contends that proposed revenue-raising measures and administrative compliance shifts could increase corporate tax burdens and discourage long-term private sector investment. Industry leaders argue that changes to capital gains tax rules, discretionary trust arrangements, and increased Australian Taxation Office audit programs may erode the capital expenditure necessary for productivity growth.

In the European Union, a proposed tax omnibus package aims to reduce compliance costs by an estimated €6.6 billion annually. The European Commission's proposal seeks to streamline rules regarding cross-border payments, corporate restructuring, interest deductions, and anti-tax avoidance measures. The initiative intends to simplify the interaction between European and international tax frameworks to reduce administrative burdens and prevent economic double taxation for businesses operating across multiple jurisdictions.