Sinclair Davidson examines the arguments for corporate taxation and concludes that flawed assumptions are propping up Australia’s corporate tax rates. Australian corporate taxation is highly concentrated, with many corporates not paying any tax at all or paying very low rates of tax, while a small number pay a high level of tax. The corporate tax debate in Australia, to the extent it exists at all, has been overshadowed by the personal tax debate. This paper’s analysis makes it clear that corporate taxation is in need of reform. The corporate rate of 30% should be lowered. The Australian corporate tax rate is high by international standards, as is the amount of revenue it raises. High corporate tax rates have been shown to have deleterious effects on the economy.