The growing company tax burden contrasts with the state of the economy, which is showing some weaknesses and facing substantial risks — as discussed later in this paper. Australia’s company tax system is not well placed to address these risks. The tax rate was 49% in the 1980s, and was cut several times since then to reach 30% in 2001–02,7 but has not changed since then.
The uncompetitive nature of Australia’s company tax system is examined in this submission, along with the benefits of the tax cut; and responses to some of the arguments presented against the policy.