The Reserve Bank of Australia (RBA) released a discussion paper this week on investment tax breaks. The study looks at whether tax incentives, such as instant asset write-offs for utes, boost business investment.
Business investment is an important contributor to overall economic growth, and has been sluggish in recent years.
The authors conclude the evidence for these tax breaks is “mixed at best”. They say that income tax breaks used during the global financial crisis increased investment significantly, however:
