Proposed Aussie tax changes would lure investors away from NZ
Australia could lower its company tax rate to 25%, potentially attracting foreign investment away from New Zealand if recommended changes are adopted.
The Business Tax Working Group (BTWG) wants to lower the company tax rate from 30%, but it has to offset that by making savings in other areas so the changes are revenue neutral.
New Zealand's company tax rate is 28%, reduced from 30% last year.
Ernst & Young partner Aaron Quintal told NBR ONLINE a 5% decrease in the rate should make the Australian economy more efficient in the long term.