In its submission to the federal government ahead of the federal budget, the Business Council of Australia has called for a investment allowance of 20 per cent to all companies.
The peak body said the broad-based incentive would form part of a private-sector led recovery of the economy and lead to a growth in investment.
The council's chief executive Bran Black said geopolitical tensions following the threat of tariffs by US President Donald Trump had reinforced the need for a thriving domestic economy.
"We need to unleash the private sector because it's ultimately businesses that generate economic growth and prosperity, which ultimately helps raise the living standards of every Australian," he said.
"At a time of significant geopolitical uncertainty, we should focus on the things that are within our power to control – that means establishing the most competitive regulatory and investment settings we can."
The Business Council also used its submission for the federal budget to enforce a cap of spending growth of two per cent each year, as well as a push for further deregulation and cutting red tape.
"The need for a new pro-business approach has been sharply clarified by the new US administration, with President Trump intending to dramatically lift US competitiveness with policy aspirations around further company tax cuts and a broad program of deregulation," Mr Black said.
The submission was made ahead of the federal budget, which is due to be handed down on March 25.
However, the budget may not be held should an election be called by Prime Minister Anthony Albanese before that date.
The election must be held by May 17 at the latest.
The peak business group also used the submission to call for reforms to workplace laws to have more flexibility for employees.
"We have shifted the pendulum too far against employers, making it far less attractive to hire and grow," the submission said.
"We must increase flexibility by addressing the most harmful recent changes, including compulsory multi-employer bargaining."
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