Australian discussion paper outlines measures to fund a corporate tax rate cut

The Australian Business Tax Working Group's recent discussion paper canvassed ways to reduce the Australian company tax rate in a revenue neutral manner by 'broadening' the business tax revenue base. The paper's proposals broadly are designed to compensate the Australian government for its loss of tax revenue from a proposed corporate tax rate cut. Although a corporate tax rate reduction is welcome, some or all of the proposals to fund the tax cut may affect multinationals, with increasing significant impact in certain industry sectors.