Assessment of Australia’s Tax Reforms Effectiveness to Economic Growth

This research proposal aims to assess and determine the effectiveness of Australia’s corporate tax reforms to Australia’s economy. The problem identified that this proposal seeks to address it is the negative impact that corporate tax reforms have on Australia’s small economy and to determine whether it is necessary for Australia to make the reforms.

Research Proposal 1
RESEARCH PROPOSAL FOR ASSESSMENT OF AUSTRALIA’S TAX REFORMS
EFFECTIVENESS TO ECONOMIC GROWTH
By
Student’s Name
Course:
Professor:
University:
City and State:
Date:

Research Proposal 2
Table of Contents
1.0 Executive Summary………………………………………………………………….....3
2.0 Introduction……………………………………………………………………………..4
3.0 Research Problem and Research Question……………………………………………...5
3.1 Research Problem…………………………………………………………….....5
3.2 Research Question………………………………………………………………6
4.0 Research Objectives…………………………………………………………………….6
5.0 Literature Review……………………………………………………………………….7
5.1 Australia’s corporate tax rate…………………………………………………...7
5.2 Australia’s Current Corporate Tax Rates Issues………………………………..8
5.3 Significance of Lowering Corporate Tax Rates………………………………...9
5.4 Competitive Declination of Tax Rates…………………………………………11
5.5 International Corporate Tax Changes…………………………………………..12
5.6 Comparative Tax Rates…………………………………………………………13
6.0 Research Design and Methodology…………………………………………………….14
6.1 Research Methodology…………………………………………………………14
6.2 Research Design………………………………………………………………..15
7.0 Conclusion……………………………………………………………………………...16
8.0 References……………………………………………………………………………....17
9.0 Appendix………………………………………………………………………………..18
9.1 Appendix 1: Proposed Ethical Approval Form………………………………....21
9.2 Appendix 2: Participant Consent Form………………………………………....25

Research Proposal 3
1.0 Executive Summary
Australia is aiming at gaining a competitive advantage in the global market by attracting foreign
investors into Australia; this country has resorted to making corporate tax reforms which focus
on lowering corporate tax that is fair and affordable to both local and foreign investors.
Australia’s corporate tax rate is 30% at the moment which is relatively the lowest rate in
Australian history, and this rate is not efficient enough to make Australia competitive. In the
course of this period, some recommendations on further corporate tax reforms have been raised.
This paper proposes the assessment and determination of the effectiveness of Australia’s
corporate tax reforms to Australia’s economy. The problem identified that this proposal seeks to
address it is the negative impact that corporate tax reforms have on Australia’s small economy
and to determine whether it is necessary for Australia to make the reforms. The core aim of this
research is to identify previous corporate tax reforms that have been implemented in Australia
and determine the effectiveness of those reforms. This research also targets identifying
challenges of implementing the new tax reforms or tax policy as well as the benefits of tax
reforms in local and international trade. This paper proposes the research exploits an exploratory
type of study and focuses on the qualitative research approach. Gathering of data will be through
secondary data such as journals. With this research design and methodology, the research is
deemed to meet its purpose.

Research Proposal 4
2.0 Introduction
Most countries worldwide have considered taking various corporate tax reforms to thrive
in the global market. Australia aims at gaining competitive advantage over other countries in the
global market by attracting foreign investors into Australia, therefore, this Australia has resorted
to making corporate tax reforms which lower the corporate tax rates to a fair and appealing rates
for both local and foreign investors (Reinhardt and Steel, 2006, p. 26). Australia is a small
economy and thus significantly rely on foreign investors as a way of earning revenue to the
economy. Australia has a rich history on corporate tax, and its corporate tax rates have been
trending downwards as from the 1980s (“Appendix B –Treasury.gov.au,” n.d.). Australia has
considered cutting down corporate tax rates to gain a competitive advantage in the global market.
However, in instances that the Australian government has alleviated the corporate tax rates to be
a fiscal tightening measure. Substantial cuts in corporate tax rates usually are accompanied by an
increasing corporate tax base (Ingles and Stewart, 2018, p.12). Tax reforms have been a top
concern in the government policy. In 1998, the Australian government adopted a comprehensive
A New Tax System plan that was the initial step for cutting corporate tax rates by introducing
10% GST, withdrawal of wholesale sales tax, individual tax cuts as well as ban on rafting other
taxes including alterations to the welfare payment systems as well as pensions in Australia in
2000 (Murphy, 2018, p.9). Countries like the USA and UK are very competitive in the global
market since they have a strong economy and low corporate tax rates. The strong economy gives
investors courage and will to invest in these countries thus attracting more and more foreign
investors. Australia’s corporate tax rate is 30% at the moment which is relatively the lowest rate
in Australian history, and this rate is not efficient enough to make Australia competitive
(Australia, 2018, p.35). All along through since this period, some recommendations on further

Research Proposal 5
corporate tax reforms have been raised, and the government is focusing on taking into
consideration the recommendations given.
Although these corporate tax reforms have a positive impact on the economy by
attracting more foreign investors, it is also probable that it has a negative impact on the economy
of Australia. In essence, Australia is a small economy, and such corporate tax reforms may
negatively impact its economy (Dyreng et al., 2017, p. 442). The Australian government now
wants to focus on encouraging foreign investors in all service sectors through lowering corporate
tax by undertaking tax reforms. It is necessary also to consider assessing and to determine
whether this corporate tax reform is valid and has a positive impact on Australia’s economy
(Office, n.d.). This paper proposes the assessment and determination of the effectiveness of the
company tax reforms to Australia’s economy. The problem identified that this proposal seeks to
address it is the negative impact that corporate tax reforms have on Australia’s small economy
and to determine whether it is necessary for Australia to make the changes. This paper will
critically analyze literature reviews from various studies and research as well as provide research
design and methods to be undertaken in addressing this issue.
3.0 Research Problem and Research Question
3.1 Research Problem
Australia considers corporate tax to be a significant contributing factor to its economic
growth. However, Australia faces a problem of being uncompetitive in the global market because
its corporate tax rate is high thus not attracting foreign investors. Despite Australia even
lowering its corporate tax rate, it remains to be uncompetitive. Previous corporate tax reforms
that had been implemented in Australia have proven to have been ineffective as Australia still is

Research Proposal 6
uncompetitive. This situation raises further concern on whether the proposed corporate tax
reforms will be useful, contributing to Australia’s economic growth and make Australia
competitive in the global market and whether it is necessary for Australia to make the changes to
corporate tax rates.
3.2 Research Question
Therefore, the research questions to guide the study are; what kind of tax reforms have
ever been implemented in Australia previously and how have they contributed to the economic
growth of the country? What are the competitive problems probable to cause Australia’s
corporate tax rate changes?
4.0 Research Objectives
The core aim of this research is to determine prior corporate tax changes that have been
implemented in Australia and determine the effectiveness of those reforms. This research also
targets identifying challenges of implementing the new tax reforms or tax policy as well as the
benefits of tax reforms in local and international trade. Essentially, Australia has a small
economy, and it significantly depends on foreign investors’ corporate taxes as a source of
revenue for the country. Therefore, the purpose of this research is to determine whether lowering
corporate tax rates is the best strategy for improving Australia’s economic growth.
5.0 Literature Review
5.1 Australia’s corporate tax rate
As per the Henry Review, it is asserting corporate tax rate require to be minimized from
thirty percent to twenty-five percent (Garkusha et al., 2015, p.274). The Henry review further

Research Proposal 7
stated that Australia’s lowering of the corporate tax rate from the era of 1980 to 2000 resulted in
strong growth so that alteration would result in more growth (Garkusha et al., 2015, p.276).
Concurrently, the review further reiterated the corporate tax rate for Australia not to be
competitive compared to other countries worldwide and the government need to review the
taxation system. It also emphasized the importance of corporate tax rates reduction since it will
result in more investment as well as assist small large and also medium scale enterprises (Vann,
2013, p.61).
Alternatively, some issues have been projected to be likely to come up suppose the
corporate tax rates are lowered. These issues entail period it shall consume in minimization of
corporate taxes to transition employees and subsequently, increase the gap that would be
established between optimal personal rate as well as the corporate rate (Stiglitz and Rosengard,
2015, p.22). Similarly like the challenges of tax cuts, the government of Australia lacks sufficient
funds for changing the tax rate. However, another tax reform review undertaken asserted that the
common perspective of tax reformers in charge of decreasing personal tax rate which narrows
the gap between individual tax rates and the company taxation rates is a better means of
prospering, nonetheless, global proof is utilized suggesting that lowering the corporate tax rate
will be the most effective way to increase the output and wages (Zellner and Ngoie, 2015, p.70).
Nonetheless, Kingston takes a reference to research undertaken by Hassett and Mathur which
identified that minimizing the corporate tax rate in a country by 10% is concomitant to an 8%
increase in domestic tax wages in production and manufacturing ("Globalisation," n.d, p.6).
5.2 Australia’s Current Corporate Tax Rates Issues
As per John Fraser, Treasury Secretary belonging to Australia, actually a corporate tax
and its rates are a big issue in concern to organizations taking into consideration investing in the

Research Proposal 8
basis of his experience as an investment manager previously. Moreover, he emphasized that it
lacks essentiality if the rate of corporate tax stands are thirty percent or even thirty-five percent
since there are more vital concerns like governance as well as solving of disputes (Kawano and
Slemrod, 2016, p. 410). Nonetheless, alternatively, he is in support of the reduction of the
corporate tax rates with the aim of helping small as well as medium-sized companies. In the
2015 budget which proposed cutting of corporate tax rates by 1.5% for small enterprises, thus
reducing the corporate tax rate in that business segment to 28.5% (Bonoli, 2017, p. 25).
Additionally, a corporate tax rate decrease improves the flow of cash of the associated small
enterprises and as a result, increasing their potential of engaging within the economy.
In March 2015, the government of Australia released a tax discussion paper discussing
changes in corporate tax rates and other taxes in Australia. According to this tax discussion
paper, it asserts that the high corporate tax in Australia may discourage investment and
consequentially resulting in low wages and prosperity (HOW & VERHOEVEN, 2017, P.271).
Moreover, it confers that the present corporate tax rate is not competitive thus making it harder
for Australia to achieve its objectives of attracting necessary investment (“Part 1: Overview,”
n.d.). Additionally, the high corporate tax rate is capable of providing an incentive to companies
to facilitate profit shifting.
Furthermore, the tax discussion paper of 2015 portrays the reality of the way Australia
depends heavily on corporate tax income in comparison to other nations (Bamiatzi et al., 2016,
1450). For instance, the corporate taxation of Australia was 5.2% of the Gross Domestic Product,
while the counties were averaging at 2.9% of the Gross Domestic Product (Grubert and
Altshuler, 2015, p.32). Additionally, the reduction of the corporate tax rate for Australia will
draw higher investments as well as a result in capital deepening. However, this would eventually

Research Proposal 9
be a promotion of growth in employment opportunities, productivity, wages as well as
innovation.
Also, the tax discussion paper of 2015 points out the effect of corporate tax rates on
economic development as well as living standards (Graham et al., 2017, p.3130). One major
reason discouraging foreign Australia’s investors is because it has a higher corporate rate in
which is even uncompetitive. This issue means that investment decisions investment decisions
may be impacted by the tax (Brys et al., 2011, p.34). In general, high taxes leads to fewer
investments. Just as economies tend to be more open, obstacles to investment may have a more
significant effect on the country’s economic development as well as the real wages growth.
5.3 Significance of Lowering Corporate Tax Rates
Through the reduction of corporate tax rates, this may boost top level investments. In
short-term, minimal tax rates are likely to attract foreign investors into Australia, and eventually,
all Australians will benefit from the increased investments (Pattenden and Twite, 2008, p.12).
Also, the low corporate tax rate in multinational firms would minimize the incentives in tax
planning as well as profit shift in Australia (Swank, 2016, p.575). The funds used on tax
planning will be saved as well as ultimately resulting in high revenues and also may be utilized
in a more productive way to the country’s economy.
Nonetheless, reducing the corporate tax rate will ultimately have a big effect on tax
revenues within a short period. Such loss is partly offset in long term investments because of low
tax rate generating more revenue (Arena and Kutner, 2015, p.2261). The present and available
investors will also be the benefit of the reduced corporate taxes and also new investors. Also, the
risks of experiencing base erosion and profit sharing are alleviating. The corporate tax rate for

Research Proposal 10
Australia is very uncompetitive (Mahar, 2016, p. 142). This uncompetitiveness discourages
foreign investors from getting into Australia to invest thus impacting the economic growth of the
country.
Moreover, a higher corporate tax rate provides an incentive that causes profit shifting
(Clausing, 2016, p. 4). Suppose the corporate tax rates are reduced it will avoid companies from
profit shifting as well as attracting necessary investment. Nonetheless, it would result in revenue
losses for a short period.
Tax cutting can slow down the economic growth through an increase in budget deficits
(McClure et al., 2018, p.501). Whenever the economy is functioning close to prospective
governmental borrowing funded through diversion of some capital which would have been
channeled into private investment or rather through borrowing from investors. However,
government borrowing outdoes private investment, thus minimizing future productivity
comparative to what it would look like or lowers the amount of income that would be obtained in
future from the investment of the citizens of the country (Spence, 2016, 489). However, deficits
reduce the wellbeing of future generations. The long term impacts of tax policies rely not only on
the incentive impact but also on the budget impacts. Suppose the government lessens marginal
tax rates for personal incomes, for instance, long-term effects that can be positive or negative
relying on the effects of savings as well as investments outweighing the likely drag from
alleviated deficits (McClure et al., 2018, p. 499).
5.4 Competitive Declination of Tax Rates
Many countries have utilized the recent tax reforms in lowering taxes on enterprises as
well as individuals, with an aim of improving on the investment, consumption as well as the

Research Proposal 11
labor market contribution progressing a trend which began several years ago, as per the new
report of the OECD (Richardson et al., 2015, p.47). Essentially, tax policy reforms of 2018
elaborate the resent tax reforms in thirty-five Tax Policy Reforms of 2018 describing the resent
tax reforms being undertaken in thirty-five OECD member countries (Cannavan et al., 2017,
p.12). The report determines the main tax policy trends and points out the economic stimuli
offered by the fiscal policy inclusive of a more substantial portion of tax policy thus becoming
more vital.
Substantial tax reforms initiatives have been proposed to Australia among other countries
strongly focusing on encouraging investment as well as some intervening measure made to
promote fairness. Some countries have started tax measures outstandingly and formally (Chalk et
al., 2018, p.9). In all countries, this report indicates the progressive trend in corporate income tax
rate reduction and has been significantly driven by significant reforms in many big countries
with traditional high corporate taxes. The mean corporate tax rates in the OECD member
countries depreciated from 32.6 percent in 2000 to 23.9 percent in 2018 (Atkinson et al., 2011,
p.22). Even with the depreciating trend in the mean corporate tax rates which has gotten a
transformed momentum in current years, corporate tax rate cuts are slightly mentioned earlier
before the emergence of the crisis.
Essentially, among the countries which have incorporated substantial corporate tax
reforms are those with higher corporate tax rates, whereby tax reforms were past due. However,
these corporate tax reductions have raised some concerns regarding the race towards the bottom
whereby most of such countries seem to be engaging in their race to the average economic
performance with their current corporate tax rate reduction now putting them in the centre of the

Research Proposal 12
pack (Henty et al., 2017, p.11). However, it is anticipated that other countries will respond to
such trends better in future.
5.5 International Corporate Tax Changes
OECD identifies more than just corporate tax reform, several common tax reform
trends in their current report. Individual income tax reductions have been implemented in various
countries, mainly to improve the tax burden on low as well as the middle-income earners (Chalk
et al., 2018, p.11). The most common approach is to ensure increased income tax credits in
earnings that can attain dual objectives of alleviating labor market partaking as well as improving
the progressiveness of the tax system. Also, more reforms regarding security precisely social
security contribution, in general, have been constrained, and such charges will progress to burden
the labor income in several countries. The Value-added (VAT) tax rates became stable as South
Africa remained to be the only country whereby the standard VAT rate was increased in 2018
(Chalk et al., 2018, p.13). Higher VAT rates have made several countries to seek alternative
means to raise additional VAT revenues, particularly using tax administration as well as anti-
fraud interventions.
Substantially, till today, the depreciating statutory corporate tax rates have not at the
moment minimized company tax assortments as the Gross Domestic Product share. This is due
to the deteriorating statutory corporate tax rates usually are conveyed by tax base increment, and
also corporate sector enlargement as well as increased profitability over the applicable time
(McClure et al., 2018, p. 500). As global tax antagonism probably caused the declination of the
statutory company tax rates, alternatively, policymakers or even electorates might have
incorporated what seems to be a prosperous policy adopted by other nations. Domestic
deliberations might also have been germane (McClure et al., 2018, p. 501). For Australia, the

Research Proposal 13
most beneficial thing about the removal of economic alterations by increasing the corporate
income tax base influencing the policy significantly.
5.6 Comparative Tax Rates
Australia has a 30% statutory corporate tax rate which is entirely below average.
Viewing top federal corporate tax rate only, income rates of Australia is within the confines of
the country’s Gross Domestic Product with the weighted OECD average 31% as well as the un-
weighted OECD average of 28% (Grubert and Altshuler, 2015, p.36). Highly weighted average
significantly gives a reflection of the relatively high rate taxed in the United States. By
considering the surtaxes as well as the sub-national taxes which several countries except for
Australia charge on corporate income, the contrast is even more conducive. The rate of
Australia’s corporate tax is significantly lower than the Gross Domestic Product of the weighted
OECD average which is 37% as well as a bit above the average of the un-weighted OECD
average of 29.96% (“Appendix B –Treasury.gov.au,” n.d.).
Thus, to retain integrity as well as fairness, it is essential that firms operating their
enterprises within Australia are paying their taxes to the Australian government. Therefore,
lowering of corporate tax rates reduces the firm’s enticement for involvement in profit shifting,
tax evasion as well as debt loading (Zellner and Ngoie, 2015, p.71). However, there are various
perspectives regarding the taxation alteration in Australia. Certain people are opposing changes
within the corporate tax rate reforms whereas others support it asserting that it is advantageous to
the country suppose corporate tax is lowered.

Research Proposal 14
6.0 Research Design and Methodology
6.1 Research Methodology
The methodology that the research will take on will be through the use of a qualitative
approach, and the type of research will be exploratory. In essence, this qualitative research will
emphasize building theories, identifying patterns as well as establishing both eloquent and
analytical generalization which are constrained to the context of the population understudy which
is Australia. This research will identify corporate tax changes and reforms patterns. The literature
shall be reviewed utilizing secondary data; online sources like journal articles, newspaper
articles, government reports, periodical articles, as well as discussion papers to identify
supporting as well as opposing arguments regarding the reduction of corporate tax rates. This
literature review will also help in fulfilling the purpose of the research which is to determine
whether lowering the corporate tax rates is the best strategy for improving Australia’s economic
growth. It will also facilitate the identification of previous corporate tax reforms that have been
implemented in Australia and determine the effectiveness of those reforms and also to determine
the challenges of implementing the new tax reforms or tax policy as well as the benefits of tax
reforms in local and international trade. Primarily, the research will significantly rely on
government reports and discussion papers in identifying the advantages and disadvantages of
lowering Australia’s corporate tax rates.
Data for this study will be collected through an interview with relevant stakeholders.
Interviews shall be scheduled for various company managers to collect their views and
information that relates to the proposed corporate tax rates reforms. Other interview schedules
will be conducted to random Australian citizens to give their views about impacts of the
reduction of corporate tax rates. A random sampling method shall be used in selecting

Research Proposal 15
participants of the interview. The sampling group respondents of the interview shall focus on
managers of both small and big businesses. Managers from both big and small companies will be
randomly selected to take part in the interview as respondents. After the interviews are
completed, analysis of data shall be done through thematic content analysis method.
Also, this research will do a comparative analysis with other competitive countries
like USA and UK. This comparative analysis will entail selecting and analyzing the similarities
and differences for Australia, the USA, and the UK focusing on explaining the similarities and
differences identified. Moreover, comparative analysis will point out the differences in
interpretations of similar information in achieving the desired outcome. Thus, the research will
strictly and adequately conform to the comparative approach to have an understanding of the
benefits and disadvantages of reducing corporate tax rates in the USA and UK while making a
comparison with Australia.
6.2 Research Design
This process will begin by describing the economy of Australia, the USA, and the
UK. This description of the economy of every country will help in determining the economic
performance of the country and give a good understanding of the financial status of every
country. This economic assessment will lay as a basis of assessing the impact of minimizing
corporate tax rates with regards to the power of the economy of the country. Primarily, it is
perceived that the minimizing corporate tax rates in a county with a small and weak economy
can be disastrous while for a country with a strong economy it is advantageous. Therefore, it
would be essential to begin by describing the economy of every country first.

Research Proposal 16
Second, the research will then proceed to overview the corporate tax rates for the
comparison countries; USA and UK. Essentially, a corporate tax rate of a country is capable of
having a powerful, symbolic as well as a significant influence on the retentive businesses that
exist while also attracting new investors and this influence is of great benefit to the economy of a
country. Therefore, this makes it important to highlight these countries’ corporate tax rates to
have a good understanding of their corporate tax rates and their impacts and contribution to the
economic growth of the country. This will also help in determining the challenges encountered
by these countries in adopting and implementing corporate tax reforms. Also, it will be able to
determine the factors that contribute to or hinders the international competitiveness of every
country.
In the third step, it will entail analyzing corporate tax reforms for USA, UK as well
as their inferences to Australia. Critical analysis of the changes in general taxation that have
occurred in these two countries will be done to get useful information on how the corporate tax
rates changes influence the economic growth of this country and determine how such aspects can
be applied to Australia. These findings help in identifying the possibilities of Australia to thrive
and successfully implement the corporate tax reforms by copying and applying strategies that
these competitive countries adopted to gain a competitive advantage too in the global market. In
this step, challenges that these countries encountered in the implementation of corporate rates
changes to fulfill one of the objectives of the research which is to determine challenges and
difficulties that Australia is likely to meet in the proposed corporate tax reforms. The study shall
also focus on analyzing period that the corporate tax rate changes take to influence the country’s
economy by improving the economic growth. The research shall also analyze the general

Research Proposal 17
employment rate increment that is attained due to reduced corporate tax rates. The research shall
also focus on the impact of these changes on organizations and companies.
7.0 Conclusion
This proposal began by undertaking a detailed literature review to understand various
perspectives about Australia’s tax reforms. An overview and background of Australia taxation
history including an evaluation of Australia’s economy have been given. The evaluation of the
United States and the United Kingdom economy as well provided. Therefore, to ensure that the
research meets the objectives of the study, the above strategies and procedures need to be taken
into consideration

Research Proposal 18
References
Appendix B – Business tax modelling – Treasury.gov.au [WWW Document], n.d. URL
https://treasury.gov.au/publication/business-tax-working-group-final-report/business-tax-
working-group-final-report/appendix-b-business-tax-modelling/ (accessed 1.14.19).
Arena, M.P., Kutner, G.W., 2015. Territorial tax system reform and corporate financial policies.
Rev. Financ. Stud. 28, 2250–2280.
Atkinson, A.B., Piketty, T., Saez, E., 2011. Top incomes in the long run of history. J. Econ. Lit.
49, 3–71.
Australia, 2018. Australian income tax legislation, 2018.
Bamiatzi, V., Bozos, K., Cavusgil, S.T., Hult, G.T.M., 2016. Revisiting the firm, industry, and
country effects on profitability under recessionary and expansion periods: A multilevel analysis.
Strateg. Manag. J. 37, 1448–1471.
Bonoli, G., 2017. Labour market and social protection reforms in international perspective:
parallel or converging tracks? Taylor & Francis.
Brys, B., Matthews, S., Owens, J., 2011. Tax Reform Trends in OECD Countries.
Cannavan, D., Gray, S., Hall, J., 2017. The Market Value of Dividend Imputation Credits
Implied by Futures Prices.
Chalk, M.N.A., Keen, M.M., Perry, M.V.J., 2018. The Tax Cuts and Jobs Act: An Appraisal.
International Monetary Fund.
Clausing, K.A., 2016. The effect of profit shifting on the corporate tax base in the United States
and beyond. National Tax Journal. 69, 905-934.

Research Proposal 19
Dyreng, S.D., Hanlon, M., Maydew, E.L., Thornock, J.R., 2017. Changes in corporate effective
tax rates over the past 25 years. J. Financ. Econ. 124, 441–463.
Garkusha, V., Joyce, P., Lloyd, C.S., 2015. Corporate Tax Rate and Recent Inbound and
Outbound Mergers and Acquisitions Activity in the United Kingdom. Procedia Econ. Finance
30, 271–282.
Globalisation and the dilemmas of income taxation in Australia.
Graham, J.R., Hanlon, M., Shevlin, T., Shroff, N., 2017. Tax rates and corporate decision-
making. Rev. Financ. Stud. 30, 3128–3175.
Grubert, H., Altshuler, R., 2015. Shifting the burden of taxation from the corporate to the
personal level and getting the corporate tax rate down to 15 percent, in: Proceedings. Annual
Conference on Taxation and Minutes of the Annual Meeting of the National Tax Association.
JSTOR, pp. 1–53.
Henty, P., Cai, Y.Y., Davis, G., 2017. US Corporate Tax Reform: Implications for the rest of the
world. Aust. Treas. Novemb. Httpsstatic Treas. Gov Auuploadssites1201711p2017-T234104-
US-Corp.-Tax-Reform Pdf.
HOW, J., NGO, K., & VERHOEVEN, P. (2011). Dividend initiations and long-run IPO
performance. Australian Journal of Management. 36, 267-286.
Ingles, D., Stewart, M., 2018. Australia’s Company Tax: Options for Fiscally Sustainable
Reform, Updated Post Trump. SSRN Electronic Journal.

Research Proposal 20
Kawano, L., Slemrod, J., 2016. How do corporate tax bases change when corporate tax rates
change? With implications for the tax rate elasticity of corporate tax revenues. Int. Tax Public
Finance 23, 401–433.
Mahar, F., 2016. The economic impact of a corporate tax rate cut in Australia. Tax. Aust. 51,
141–143.
McClure, R., Lanis, R., Wells, P., Govendir, B., 2018. The impact of dividend imputation on
corporate tax avoidance: The case of shareholder value. J. Corp. Finance 48, 492–514.
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Recipe for a Small Open Economy? SSRN Electronic Journal.
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https://www.ato.gov.au/rates/changes-to-company-tax-rates/?default (accessed 1.14.19).
Part 1: Overview - Chapter 1: The need for reform - Australia’s Future Tax System: Final Report
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Finance 14, 1–16.
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avoidance spanning the global financial crisis: Evidence from Australia. Econ. Model. 44, 44–
53.

Research Proposal 21
Spence, K., 2016. The evolution of corporate taxation: a work in progress. Aust. Tax Forum 31,
481–508.
Stiglitz, J.E., Rosengard, J.K., 2015. Economics of the public sector: Fourth international student
edition. WW Norton & Company.
Swank, D., 2016. Taxing choices: international competition, domestic institutions and the
transformation of corporate tax policy. J. Eur. Public Policy 23, 571–603.
Vann, R.J.,. Corporate tax reform in Australia: lucky escape for lucky country? Br. Tax Rev.
2013, 59–75.
Zellner, A., Ngoie, J.K., 2015. Evaluation of the effects of reduced personal and corporate tax
rates on the growth rates of the US Economy. Econom. Rev. 34, pp.56–81.

Research Proposal 22
Appendix
Appendix 1: Proposed Ethical Approval Form
Student’s Name
Email address
Number of the student
Course
Education level status
Supervisor’s name
Project Title Assessment of Australia’s tax reforms
effectiveness to economic growth
Beginning date of the proposed project 20/01/2019
Proposed project completion date 21/03/2019
1. Does the study entail any of the subsequent risk factors below:
Research encompassing business owners If YES, mark here: X
Research encompassing children or other
disadvantaged groups
If YES, mark here:
Research entailing sensitive issues If YES, mark here: X
Research encompassing confidential information If YES, mark here: X

Research Proposal 23
2. Briefly highlight the proposed research’s aims and objectives
This research has three main objectives:
1) To determine prior corporate tax changes that have been implemented in Australia
and determine the effectiveness of those reforms.
2) To identify challenges of implementing the new tax reforms or tax policy as well as
the benefits of tax reforms in local and international trade.
3) To determine whether lowering corporate tax rates is the best strategy for improving
Australia’s economic growth.
3. Give a description of the research design proposed including the kind of data to be
obtained from human participants and the type of people to participate in interviews.
Also, mention the research questions proposed.
The research design that the research will take on will be through the use of a qualitative
approach and the type of research will be exploratory. In essence, this qualitative research
will put emphasis on building theories, identifying patterns as well as establishing both
eloquent and analytical generalization which are constrained to the context of the population
understudy which is Australia. This research will identify corporate tax changes and reforms
patterns. Qualitative analysis of data will done on secondary data; online sources like
journal articles, newspaper articles, government reports, periodical articles, as well as
discussion papers so as to identify supporting as well as opposing arguments regarding the
reduction of corporate tax rates. This will also help in fulfilling the purpose of the research
which is to determine whether lowering the corporate tax rates is the best strategy for
improving Australia’s economic growth.
Additionally, Thirty minutes interviews will be conducted to manager of various companies
and also some members of the public to gather data. The data to be collected from human
participants will be their opinion about corporate tax reforms. Analysis of data shall be done
through thematic content analysis method. A comparative analysis for Australia’s corporate
tax rates will also be done with other competitive countries like USA and UK.
This research design is deem to answer the following proposed research questions:
 What kind of tax reforms have ever been implemented in Australia previously and
how have they contributed to the economic growth of the country?
 What are the competitive problems probable to cause Australia’s corporate tax rate
changes?

Research Proposal 24
4. Does the research project proposed processes involve any sort of possible sensitive
factors or issues that may impact the psychological, physical or even emotional well-
being of those participating in the research?
This study might examine issues that may be a bit sensitive to the participants in the
research. This can be encounter when undertaking interviews, as the interviewees give
express their opinions about the proposed company tax reforms and also the existing
corporate taxation rates it may affect them emotionally. However, all participants will be
treated in a sensitive manner and also ensure their confidentiality. They will be reassured
that their responses will be reported with confidentiality.
5. Describe in what way you will acquire the informed consent of the participants in
the research. If applicable, kindly provide an attachment of your drafted consent
form.
Since secondary qualitative data is the company’s property therefore I am permitted to use
the data. However, to get more data I will obtain an informed consent by informing the
participants about the interview in advance and also give them an overview of the nature of
study including the way their views will be used. However, information obtained will be
recorded anonymously.
6. Describe the manner in which you will keep the research data gathered
confidentiality.
Confidentiality of the participants will be a top priority by recording their views
anonymously. Their names will not be recorded and incase photos will be taken, the images
will be blurred to ensure that it does not reveal their identity. Interview session will be
conducted in private.
7. Describe how data will be stored, and accessed?
Data obtained will be stored in a computer encrypted and protected with a password. The
data can be access only after being granted permission to. However, the data will be later
easily accessed when the dissertation is finished.

Research Proposal 25
Signature of the student Date
Regarded for the Research Supervisor
Suppose you think this project ethics application is viable you may approve it by signing
below.
Signature of the supervisor Date
Suppose you find this application not to be viable and would like to revoke it, kindly
list your reasons here:

Research Proposal 26
Appendix 2: Participant Consent Form
Research title: Assessment of Australia’s tax reforms effectiveness to economic growth
I have read the information leaflet and have a good understanding about this
research. Every detail has been efficiently explained to me to a satisfactory
level
Yes  No 
I understand that participation in this research is optional a can choose to
quit at any time in my own convenience and I understand that quitting will
not affect me or my profession in anyway
Yes  No 
I am fully away of the probable risks attributed to this study. Yes  No 
I have been assured of my confidentiality Yes  No 
I have been provided with my own copy of both information leaflet as well
as this consent form to keep me informed
Yes  No 
I grant permission for the data I provided to be stored and used for research
purposes and also to be utilized in related studies in future if only this study
will be approved.
Yes  No 
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Participant Name (Block Capitals) | Participant Signature | Date
For the Researcher:
I have certainly taken enough time explain every detail about the research project to the above
participant such that they have fully understand it. I have notified them about the possible risk
and as well given them the opportunity to ask questions and responded to them adequately.

Research Proposal 27
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--------Name | Qualification | Signature | Date