Australia Macro Service > Australia Research Briefings

Output gain from corporate tax cut positive but modest

The cut in the US corporate tax rate has re-opened the debate about Australia’s attractiveness as an investment destination, and the economy’s ability to stimulate private sector investment and jobs growth. Our analysis shows that plans to cut the corporate tax rate to 25% from FY19 will have only a modest overall impact. It’ll increase GDP by around 0.4ppts and support an additional 20,000 jobs after five years. But with no offset in other parts of the budget, it would also push up the deficit by 0.8ppts of GDP in the medium term.

To read the full briefing please
If you are not a subscriber, request a free trial of our Global Macro Service by filling out the form below