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Australia cuts corporate taxes and adds cashflow tax to boost growth, per productivity review.
Australia has revised its corporate tax plan following business lobby opposition, lowering the rate for large firms from 30% to 28% and for small firms from 25% to 20%, while introducing a 5% net cashflow tax allowing instant capital spending deductions.
The Productivity Commission says the updated plan would boost GDP by $13 billion and improve labor productivity by 0.5% without worsening the budget, with effective rates for large firms ranging from 26.7% to 31.6% and mid-sized firms seeing rates drop to 19%–24%.
The commission also recommended reforms in education, AI adoption, emissions reduction, and preventive care, emphasizing the need to reverse stagnant productivity since 2016.
Treasurer Jim Chalmers said the government will review all findings ahead of the next budget, noting not all may be adopted.
Australia recorta los impuestos corporativos y agrega el impuesto al flujo de efectivo para impulsar el crecimiento, según la revisión de la productividad.