Contact: Jane Kneebone
Deloitte Growth Solutions
Media and Communications
+61 (0) 3 9208 7389

Contact: Les Szekely
Deloitte Growth Solutions
Director
(02) 9322 3550

In his twelfth Budget the Treasurer chose once again, to ignore the global trend to decrease company tax rates.

“With large surpluses increasingly funded by booming company tax collections the Treasurer has missed a golden opportunity to keep Australian company tax rates competitive,” said Les Szekely, Director Deloitte Growth Solutions.

“The UK recently dropped its company tax rate to 28%, Singapore to 18%, Ireland to 12.5% and Eastern Europe is moving towards 15%.

“Those few countries with nominal company tax rates of 30% or more, frequently have lower effective rates due to a range of tax incentives.

These may be broad based capital investment incentives such as the “investment allowance” once given by Australia or they may be targeted incentives, such as those for investment in specific industries or in underdeveloped areas.”

In an increasingly competitive global environment it remains to be seen whether Australia will ultimately pay the price for once again missing the boat, by not reducing the company tax rate.

NB: See our media releases and research at www.deloitte.com.au.