The Significance of Business Interest Associations in Economic Policy Reform: The Case of Australian Taxation Policy

Abstract

Taxation reform has dominated Australian politics over the past twenty-five years. Despite this prominence on the political agenda, until recently Australian governments have lacked the capacity to consolidate key elements of this tax reform agenda. While the problematic nature of Australian tax reform can be explained in part by macro-level variables, this protracted policy deadlock has also influenced historical patterns of business-government intermediation. The article argues that the evolution of the Australian tax policy network over the study period was prompted by both associational and state actors reassessing their strategies in the context of the political failure of tax reform proposals. These developments provide empirical insights into the ongoing debate relating to the factors which lead to the formation and evolution of sectoral level policy networks. The article concludes that while the increasing levels of business mobilization experienced over the study period enhanced the electoral viability of reform proposals, these new patterns of sectoral business politics should be regarded as a consequence of the policy deadlock relating to tax reform rather than primary cause of policy change.