Productivity Commission backs biggest Australian company tax rate cut in 40 years

A 20% cut for small and medium businesses proposed as part of commission’s report on how to create more dynamic and resilient economy

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The company tax rate would be slashed to 20% for all but the very biggest businesses as part of an “ambitious” Productivity Commission proposal aimed at boosting investment and revitalising the country’s flagging productivity.

The plan would deliver the biggest reduction in the company income tax rate in nearly 40 years and dramatically shift Australia from having one of the highest to one of the lowest rates in the world.