Tax Incentives and Disincentives

Historically, Australian Governments have provided a range of capital allowances via the taxation system to encourage or discourage various equipment investments. Over the years AELA has put forward the following principles to the series of business tax reviews; these focus specifically on international tax relativity:

  • the rate of Australian company tax should be at a rate which is in line with that of our major trading partners and competitors;
  • the Australian depreciation regime should not be any longer than that of our major trading partners and competitors; and
  • the level of investment incentives in Australia should be kept similar to and not less than those applicable in our major trading partners and competitors.

Historically, Australian Governments have provided a range of capital allowances via the taxation system to encourage or discourage various equipment investments. Over the years AELA has put forward the following principles to the series of business tax reviews; these focus specifically on international tax relativity (see separate discussion).