The Lead Story
Australia toys with a Net Cashflow Tax—and big business could feel the pinch.
The Big Picture: The Australian Productivity Commission dropped an interim report that would up-end the country’s corporate tax playbook, slashing the rate to 20% for companies earning under AU$1 billion while layering a novel 5% Net Cashflow Tax (NCT) on everyone else, Herbert Smith Freehills Kramer reports.
The Details:
• Today’s 25% or 30% headline rate would fall to 20% for smaller firms.
• Larger corporates would keep the current income tax and add a 5% NCT—effectively raising their bill.
• Commission modelling claims the shake-up could lift business investment by AU$7.4 billion and boost GDP by AU$14.6 billion.
• Public comments run through 15 September, with a final verdict expected in December.
Why It Matters / What They’re Saying: The Commission gushes that Australia should “pivot our corporate tax system towards the net cashflow tax,” yet critics wonder how an extra levy spurs investment when high tax rates already deter capital. Expect a dog-fight from the big-end of town before the ink is dry.
Around the Tax World
• Tech titans get a tax do-over. Amazon and Meta both flagged “substantial” U.S. cash-tax savings thanks to President Trump’s law reviving 100% bonus depreciation and immediate R&D expensing (WebProNews).
• Duty-free no more. An executive order has scrapped the de minimis exemption on all small parcels, meaning every Temu and Shein shipment will now face duties at the U.S. border (CNN).
• UK turns on the crypto spotlight. New guidance forces British exchanges to collect granular user and transaction data under the OECD’s Crypto-Asset Reporting Framework, tightening the tax net ahead of wider 2026 rules (StartupNews.fyi).
• China’s instant tax refunds lure tourists. Sales under the departure-refund scheme surged nearly 80% in H1 as malls pay rebates in-store, the Global Times notes.
Tax Stat of the Day
AU$14.6 billion — the projected GDP bump if Australia adopts the Productivity Commission’s corporate tax overhaul.
Looking Ahead
All eyes now turn to Canberra: submissions on the NCT plan close 15 September, and the final report is slated for December. Expect lobbying—and maybe a few spreadsheets— to heat up.
Prepared by MyTax - mytax.com.ng