New analysis by The Australia Institute shows that foreign investors will be the unambiguous winners of the big business company tax cut ($50+ million turnover).
“If the remaining company tax cuts now before the Senate are implemented the gift to foreign shareholders will be $3.7 billion in 2026-27, the year the tax cuts are fully phased in. For the decade beginning in 2026-27, this will be $45.4 billion,” said Ben Oquist, Executive Director of The Australia Institute.
“The big winners of the company tax cut are tax avoiders and foreign shareholders, and the results over the weekend show that voters have cottoned on that it’s the community who will lose out.
“Most Australian investors will get nothing from the company tax cut. Assuming companies maintain their dividend payout ratios then Australian investors will get higher dividends but commensurately lower franking credits to offset against their tax liability.
“Our research has consistently shown there is no correlation between lower company tax rates, employment, or economic growth.
“The electorate are looking for good service delivery and the revenue to fund it, and that’s what we saw in the by-election results.
“The company tax cuts are economically unsound and this weekend showed they are political poison.”