KEY POINTS:
Australia has been warned to cut its corporate tax rate or risk losing investment.
A 14-year global study suggests Australia will lose out to more competitive nations if it fails to ease its business tax burden.
The new KPMG study, reported by News Ltd, analysed corporate tax rates over 14 years in 86 countries.
It questions whether Australia can continue to have one of the highest corporate tax burdens in the OECD and still attract investment.
The study found Ireland slashed its company tax rate from 40 per cent to 12.5 per cent in 1993, and had since enjoyed a massive boom that has doubled its relative economic size within the European Union.
The study found that since 1993, the average corporate tax rate across the 86 countries had fallen from 38 per cent to 27.1 per cent.
The Howard Government has brought Australia's corporate tax rate down from 36 per cent to 30 per cent.
- AAP
