Overview

• In a Business Council dinner speech, the prime minister kept corporate tax changes on the table for future budgets following August’s reform roundtable.
• The Productivity Commission’s model would cut the company rate to 20% for firms with turnover below $1 billion and impose a 5% net cashflow tax with immediate capital write‑offs.
• Commission modelling points to most companies paying less tax, stronger investment and GDP gains with a neutral budget impact.
• Business Council chief Bran Black warned the lobby will fight the “world‑first” cashflow tax, arguing it is uncompetitive and could raise consumer costs.
• Treasurer Jim Chalmers says he is open to investment‑incentivising tax changes only if they are affordable, with a final Commission report and consultations still to come.