Give Me Money

The BCA Wants a Gift of up to $75 Billion From the Budget
by David Richardson

The Business Council of Australia (BCA) is again proposing a cut in company tax rates. There is little that is new: the BCA has been advocating this proposal or a similar one ever since it came into existence in the early 1980s. Currently, the BCA proposes to cut by way of increasing the threshold below which companies currently pay 25 cents in the dollar compared with the standard rate of 30 cents in the dollar. Depending on the option presented by the BCA, it amounts to $75 billion of new concessions over a decade. It is unclear, however, what the benefit of such a move would be on overall investment in the economy.

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