The head of Australia’s Board of Taxation wants to lower the corporate tax rate but says the Government won’t do it anytime soon as it works to return the budget to surplus.
Teresa Dyson told BRW reporter Nassim Khadem that there were “very, very strong arguments” that cutting Australia’s company tax rate would be good for the economy.
Australia has the 8th highest corporate tax rate in the world, accounting firm UHY Haines Norton reported last month.
Here’s what Dyson told BRW:
“If we want to go down the path of reducing the corporate tax rate it needs to be looked at from a much broader framework – the impact that a lower rate would have in terms productivity and economic growth, and how that might itself have a secondary impact on level of tax revenue collected.
“I think while [being revenue neutral] is the frame for the discussion, reform will be very difficult to achieve – if not impossible. It would require any government looking at it to take a longer-term perspective.
“I think the way that it looks at the moment, with the pressure on the federal budget and returning to surplus – that will in itself create a hurdle to look at tax reform in a more full-some way. It’s probably another election term away.”
More on BRW.
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