New analysis by The Australia Institute shows that based on Rio Tinto’s half year report, the company tax cut would represent a $7.67 billion gift to Rio Tinto over the first decade of the cut.
The Australia Institute has today launched a new Revenue Watch initiative, looking at companies over reporting season, to quantify how much company tax revenue would be lost to the federal budget should the company tax cut for big business be legislated and come into effect in 2026-27.
“The company tax cuts are economically unsound and will result in less revenue being available for community services and productivity enhancing public infrastructure,” said Ben Oquist, Executive Director of The Australia Institute.
“Everyday Australians would be appalled to know that the annual company tax saving for just one company could pay for 7,610 teachers, 8,450 nurses or 6,310 police officers.
“Our research has consistently shown there is no correlation between lower company tax rates, employment, or economic growth.
“The community are looking for good service delivery and the revenue to fund it, not a tax cut giveaway to companies like Rio Tinto.
“Despite repeated claims to the contrary , the economics of the proposed company tax cut policy does not stack up.”