This report explores the veracity of the ‘low-tax’ label in Australia by examining both absolute measures of the tax burden and relative measures based on international comparisons. It proposes that the widely-held claim that Australia is a low-tax country is misleading and risks distorting public policy debates.

This paper argues Australia needs to update our regulatory approach and change our inefficient company tax system, to a system that better encourages investment and productivity growth. This final inquiry report presents recommendations focused on two key policy reform areas: corporate tax reform to spur business investment and regulating to promote business dynamism.

The paper critically examines the Productivity Commission’s proposal to introduce a corporate cashflow tax as part of a broader reform of company taxation. The analysis demonstrates that the supporting economic modelling assumes rents can be precisely identified, and that capital is perfectly mobile – assumptions that do not hold in the real economy.

This interim report presents draft recommendations focused on two key policy reform areas: corporate tax reform to spur business investment and regulating to promote business dynamism. Significant changes to corporate tax and regulation can have a substantial beneficial impact on productivity growth in Australia. This interim inquiry report shows how.

This report contributes to debates over tax reform by examining the system of business taxation in Australia. It identifies five challenges, illustrating that the problems with Australia’s system of business taxes are complex and multifaceted. The report presents five reform steps which would deliver a simpler, lower and more productive system.