PA Consulting Group today endorsed Federal Treasurer Peter Costello's approach to dealing with the recent submissions put forward by Mortimer and Goldsworthy in relation to the Australian IT Industry.
"The message from the Australian IT industry is that they support broad-based economic reform rather than one-off handouts for the IT industry. This broad-based reform should include the taxation system," said a spokesman for the company
PA Consulting Group was critical of the Goldsworthy Report, in particular the aspects of the report that advocated concessions for the IT Industry as a basis to get it moving.
"The world is littered with examples of failed initiatives that have been started as a result as concessions and handouts. We should focus on developing areas where Australia has competitive advantage, such as the services side of the IT Industry as opposed to the manufacturing side. For instance, Australia is well placed to take a leadership position in the provision of education and training services to the IT Industry."
The Treasurer, speaking at the Australian Chamber of Commerce and Industry dinner indicated he would not support the resurrection of R&D tax breaks. "If you want to be competitive in our region do not think about high tax breaks and cashing them out in selected areas with concessions or cashing them out on selected persons with concessions," Mr Costello was quoted as saying.
PA Consulting has previously indicated that concessions, tax breaks and windfall assistance are out of step with most parts of the world that have seen their IT Industry grow substantially.
"Establishing special investment zones such as Malaysia’s multi-media corridor are to some extent window dressing." commented PA's spokesman.
