Overview
- Five final reports propose cutting company income tax to 28% for firms above $1 billion in revenue and to 20% for smaller firms, paired with a 5% net cashflow tax that enables immediate expensing of new investment.
- Commission modelling projects about $13 billion, or 0.7%, added to GDP and a 0.5% lift in labour productivity with no net hit to the budget.
- Compared with earlier drafts, fewer companies would pay more, though a small number of low‑investment, high‑profit large firms could face effective rates between 26.7% and 31.6%.
- The package calls for a $10 billion reduction target for regulatory compliance and delay costs by decade’s end, alongside annual regulatory reviews and a clearer growth mandate for the public service.
- Broader recommendations include lowering the safeguard mechanism threshold to 25,000 tonnes, phasing out some fuel tax credits and EV concessions, and boosting teaching resources and AI adoption.