Last month, the Business Council of Australia warned that Australia risks being left behind as other countries slash their company tax rates to improve competitiveness.
The moves by the US, the UK and France to reduce their tax rates has spelled bad news for Australia when it comes to investment and competitiveness. The average tax rate across the OECD is 24% and falling and it is even lower across parts of Asia.
The rate in Australia is between 27.5%-30%.
This does mean, however, that incorporation is very attractive, especially if the marginal tax rate goes to 49%.
For a second opinion, contact your nearest TaxAssist Accountant today
By Terry Murphy
Last updated November 2017