The Australian Government proposes to reduce the company tax rate from 30 to 25 per cent. However, there are widespread concerns that the fiscal cost is not affordable. This paper considers alternative reforms of corporate taxation that could fund a corporate tax rate cut. We address key non-neutralities in the corporate tax system and consider...

This paper considers alternative reforms of corporate taxation that could fund a corporate tax rate cut, while addressing key non-neutralities in the corporate tax system in an international context.

This paper looks at the arguments for and against corporation tax in the context of Australia, which has had for thirty years a dividend imputation system for corporate-shareholder taxation.

Along with Canada, Chile, Mexico and New Zealand, Australia is one of only five countries in the Organisation for Economic Co-operation and Development (OECD) that continues to operate a full imputation tax system where all corporate tax is credited to domestic shareholders. Malta, a non-OECD country, also has a full imputation system. The OECD lists...

Dividend imputation was introduced in Australia in 1987. Despite many theoretical and empirical studies, there is little consensus on its effects on the cost of equity capital, share prices, or investment – due primarily to different views on the consequences of international integration on equity pricing. The objective of this paper is to outline these...