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Australia proposes 20% corporate tax for most firms, 28% for large ones, and a 5% cash flow tax to boost growth.
Australia’s Productivity Commission has proposed lowering the corporate tax rate to 20% for most businesses and introducing a 5% net cash flow tax to boost investment and economic growth.
Larger firms above $1 billion in turnover would pay 28%.
The reforms aim to make more projects profitable, particularly for foreign investors who don’t benefit from Australia’s dividend imputation system.
While the changes could increase GDP by 0.2% long-term, they may reduce gross national income by 0.3% unless the cash flow tax captures more revenue from multinational firms.
The government is reviewing the recommendations, with business groups urging caution.
Australia propone un impuesto corporativo del 20% para la mayoría de las empresas, el 28% para las grandes, y un impuesto al flujo de efectivo del 5% para impulsar el crecimiento.