Australia's business lobby has urged the Morrison government not to give up on company tax cuts, warning it must confront the political challenge or risk Australia becoming an uncompetitive investment backwater.

The unpopular policy to cut the company tax rate from 30 to 25 per cent for all businesses was ditched in 2018 after opposition from social welfare groups and the Senate crossbench amid concerns over the cost to the budget and whether it would lead to an increase in wages for workers.

BCA chief executive Jennifer Westacott says the government needs to consider business tax reform. Credit:AAP

"Australia cannot stand still while other countries compete for investment - in 2019 alone there have been 13 countries that have cut their company tax rate," the Business Council of Australia (BCA) will say in its annual budget submission on Friday.

"As other countries continue to compete for capital by reducing their statutory and effective company tax rates over time, Australia will need to do the same. Ultimately this means a reduction in the company tax rate for all companies."