New analysis by The Australia Institute shows that based on Fortescue’s annual report, the company tax cut would be a $1.523 billion gift over the first decade of the cut to just this one company.
|$ million (converted from US$)|
|Company tax 2017-18||502.8|
|Benefit from company tax cut based on 2017-18 profit||83.8|
|Benefit from company tax cut based on expected 2026-27 profit||123.9|
|Benefit from company tax cut for decade 2019-20 to 2028-29||606.1|
|Benefit from company tax cut for decade beginning 2026-27.||1,522.9|
When the full cuts come in (2026-27) the lost company tax revenue just to Fortescue would be the equivalent of employing 1,678 nurses, 1,512 secondary school teachers or 1,253 police officers.
(Based on the average payments for different occupations in May 2016 and updating for the actual and projected wage price index, and projecting forward Fortescue’s profit.)