This paper critically examines these self-interested calls for tax cuts, and finds (1) There is no global race to the bottom on business tax (2) Our company tax arrangements are competitive, with our company income tax rate lower than many other developed nations’ rates (3) There is no dearth of foreign investment in Australia (4) When all business taxes are taken into account, Australia’s business tax revenue as a proportion of GDP is low by international standards (5) Non-tax factors, like the availability of a highly skilled workforce, can be more important than tax for encouraging investment (6) Cutting the company income tax would further encourage tax avoidance by individuals
(7) A reduction in revenue from business taxes would shift the bill onto workers and consumers, undermining the fairness of the tax system.