SYDNEY: Australia could gain an extra $30bn in revenue if the government cuts the company tax rate while wages and economic growth will take a permanent hit if nothing is done, a new report shows. Treasurer Scott Morrison is aiming to introduce the full corporate tax rate cut from 30 to 25 per cent by 2026, in a bid to boost Australia’s international competitiveness and economic activity.
The Australian reports a Treasury research paper, out today, predicts Australia could see up to $30 billion in extra tax revenue due to the stronger economic growth if the full tax rate cut is implemented.
State budgets could also benefit from greater GST collections through Australians spending more.
But there could be major economic consequences if Australia does not cut its corporate tax rate, particularly with US President Donald Trump pushing to slash America’s rate to 20 per cent.
