In Australia, the primary function of taxation is to finance government spending. Its secondary objectives relate to influencing social and economic outcomes, resource allocation, consumption patterns, the level and direction of savings, and the relative welfare of different groups. Non-distortionary taxation is not necessarily an objective of the Australian system. Australia’s corporate tax is said to be very successful, raising substantial revenue, and there has been little debate about it over the past few years. While public debate has concentrated on personal income tax, there has been little demand for corporate tax reform. Arguments by the Business Council of Australia , for example, that corporate taxes are too high have been viewed as special pleading by lobby groups. This paper investigates Australian corporate tax and highlights a number of issues that deserve greater public awareness.