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The history of Australia's company tax rate

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Australia's company tax rate has generally trended downwards since the 1980s. Where governments have increased the company tax rate it has been done to align it with the top personal rate or as part of a fiscal tightening. Significant cuts in the company tax rate have typically been accompanied by a broadening of the company tax base.

Figure 1: Company tax in Australia — the how and why of company tax rate changes (1980-2013)

In 1980, the company tax rate was 46 per cent. In 1986, it was increased to 49 per cent to align it with the top personal tax rate. In 1988, it was reduced to 39 per cent to improve its international competitiveness. In 1993, it was reduced to 33 per cent. In 1995, it was increased to 36 per cent as part of a fiscal tightening. In 2000, it was reduced to 34 per cent. Then in 2001, it was reduced to the current rate of 30 per cent.