Big cut in company tax would boost economy – but it comes with a sting
Company tax could be slashed to 20 per cent for firms with revenue below $1 billion, but businesses would be hit with a world-first “cashflow tax” to encourage them to invest in Australia and capture a share of the enormous earnings of tech giants such as Netflix and Apple.
The radical tax overhaul proposal from the Productivity Commission would hit large corporate taxpayers including BHP, Rio Tinto, Glencore and Woolworths, but would capture companies that currently pay little or no tax including Transurban, News Corp and Amazon.
The commission estimates its plan would deliver an estimated $15 billion boost to the economy, setting the stage for a battle over company tax settings at Anthony Albanese’s economics roundtable.
The commission’s report, the first of five that will form a key part of the debate at the three-day roundtable between August 19 and 21, focuses on the tax system and ways to make the Australian economy more dynamic.
Commission deputy chair Alex Robson said the tax proposals were aimed at encouraging businesses to spend more on investment that would help lift overall productivity.
