Productivity Commission proposes biggest company tax rate cut in 40 years

Sydney CBD at night. The Productivity Commission has proposed cutting company tax rates to 20% for all but the largest companies. Photograph: Nick Clark/Alamy

The company tax rate would be slashed to 20% for all but the very biggest businesses as part of an “ambitious” Productivity Commission proposal aimed at boosting investment and revitalising the country’s flagging productivity.

The plan would deliver the biggest reduction in the company income tax rate in nearly 40 years and dramatically shift Australia from having one of the highest to one of the lowest rates in the world.