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Trends in aggregate measures of Australia’s corporate tax level

Author

Listed:
  • John Clark

    (Treasury, Government of Australia)

  • Brant Pridmore

    (Treasury, Government of Australia)

  • Nicholas Stoney

    (Treasury, Government of Australia)

Abstract

Recent public debate about Australia's company tax arrangements has drawn upon two observations. The first is that, since the 1980s, company tax collections have run ahead of gross operating surplus. The second is that company tax collections as a percentage of gross domestic product are high by international standards. These observations provide a misleading impression of developments in the corporate tax level. Research presented here shows that corporate profits have grown more quickly than corporate gross operating surplus over this period.

Suggested Citation

  • John Clark & Brant Pridmore & Nicholas Stoney, 2007. "Trends in aggregate measures of Australia’s corporate tax level," Economic Roundup, The Treasury, Australian Government, issue 3, pages 1-28, September.
    • Handle: RePEc:tsy:journl:journl_tsy_er_2007_3_1
    as

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    File URL: http://archive.treasury.gov.au/documents/1304/PDF/01_Company_tax.pdf
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    References listed on IDEAS

    as
    1. Alan J. Auerbach, 2007. "Why Have Corporate Tax Revenues Declined? Another Look," CESifo Economic Studies, CESifo Group, vol. 53(2), pages 153-171, June.
    2. Heidi Willmann, 1990. "Some Calculations on Inflation and Corporate Taxation in Australia," RBA Research Discussion Papers rdp9012, Reserve Bank of Australia.
    3. Michael Devereux & Rachel Griffith & Alexander Klemm, 2004. "Why has the UK corporation tax raised so much revenue?," Fiscal Studies, Institute for Fiscal Studies, vol. 25(4), pages 367-388, December.
    4. Michael Devereux & Rachel Griffith & Alexander Klemm, 2004. "How has the UK corporation tax raised so much revenue?," IFS Working Papers W04/04, Institute for Fiscal Studies.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    business tax; corporate tax; taxation;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law

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