Understanding the Obstacles and Privileges of Corporate Tax Cut in Australia

Running head: FINANCE
Finance
Name of the Student:
Name of the University:
Authors Note:

FINANCE
1
Table of Contents
Q3: Understanding the obstacles and privileged that could be generated by the corporate tax
cut conducted by the Australian government.............................................................................2
Question 4:.................................................................................................................................4
Answer to i:................................................................................................................................4
Answer to ii:...............................................................................................................................5
Answer to iii:..............................................................................................................................5
Answer to iv:..............................................................................................................................5
Answer to v:...............................................................................................................................6
Answer to vi:..............................................................................................................................6
Answer to vii:.............................................................................................................................6
Answer to viii:............................................................................................................................7
Answer to ix:..............................................................................................................................7
References:.................................................................................................................................8

FINANCE
2
Q3: Understanding the obstacles and privileged that could be generated by the
corporate tax cut conducted by the Australian government
The decision made by the Australian government regarding corporate tax cut has
relevant privileges and obstacles for the Australian taxpayers. the overall evaluation of the
situation can eventually help in detecting the benefits or the problems that could arise after
the implementation of Corporate tax cut. there are certain benefits that could be generated
from the overall decision by the Australian government. the first and foremost impact will be
on the retention capacity of Corporate operating in Australia, which would eventually
increase their capacity to invest in the country. Moreover, the corporate tax cut would also
help the investors way dividend imputation credits will be substantially reduced by the
company when transferring it to the investors. this would eventually increase the return
generation capacity of the investors, while maintaining the same risk level. You are the
benefits that could be generated increment in employment, high wage rate, improvement in
living standards and increase in foreign direct investment. the above-mentioned benefits
would eventually allow the Australian government to collect higher tax from the corporate as
well as individuals, which would eventually increase their GDP. This improvement and
potential could be provided to investors, which might generate higher returns from
investment (Theguardian.com, 2018).
The economic condition of Australia would eventually boost after the implementation
of corporate tax rate, which would eventually help small and medium scale industries to
survive in the competitive market. moreover, the multinational companies would eventually
get benefits from reduction in tax cut which would eventually help them increase their
investing activities in Australia. Australia is considered to be one of the mineral rich
countries, while decreasing the corporate tax rate would eventually boost the economic