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April 13, 2016

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Still with the Corporate Tax Cuts?

February 1, 2017

Not necessarily Mr Turnbull!

In Australia we have a 'high' minimum wage, the tyranny of distance affecting freight costs and a small population which limits how much stock can be sold locally. These increase the cost of doing business more than the (dodge-able) corporate tax rate.

However, we have universal education, many world class universities & we punch above our weight in research. We have universal healthcare, reasonable road and rail infrastructure and stable government. These all increase productivity. We also have a low dollar, speak English and are on Asia's doorstep.

All of these factors make Australia a very attractive place to invest. In my view, a race to the bottom on business tax is a surefire way to reduce that attractiveness.

 

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