Australia Should Cut Company Tax Rate to 20 Percent for Firms Under $1 Billion: Commission

The Commission argues tax reforms could investment by $7.4 billion and boost GDP by $14.6 billion.

Treasurer Jim Chalmers at a press conference at Parliament House in Canberra, Australia on July 30, 2025. AAP Image/Mick Tsikas

Australia’s Productivity Commission has advised the federal government to overhaul its corporate tax system as part of a broader plan to boost productivity and long-term economic growth.

In a draft report released on Aug. 1,  the Commission recommends cutting the company tax rate to 20 percent—from the current 30 percent—for firms earning under $1 billion.