Creating a more dynamic and resilient economy

The PC commissioned two Computable General Equilibrium (CGE) modellers to estimate the economy-wide impacts of various company tax options.

CGE modelling report 1

Cite: Murphy, Chris (2025), Corporate Tax Reform Modelling Scenarios: Second Stage Report, 17 December 2025

Corporate Tax Reform Modelling Scenarios: Second Stage Report (PDF - 1.3 MB)

CGE modelling report 2

Cite: Nassios, Jason, and Janine Dixon (2025), Extended Company Tax Reforms: A CGE Analysis, Centre of Policy Studies Working Paper No. G-361, Victoria University, December 2025

Extended Company Tax Reforms: A CGE analysis (PDF - 1.2 MB)

Analysis undertaken using the Business Longitudinal Analysis Data Environment (BLADE).

Find the scripts in the zip file download below.

Cleaning

The following scripts were used to load and clean BLADE data:

• Cleaning_Blade-variable-collector.R
• Cleaning_Master-data-eum-cleaner.R
• Cleaning_BAS-ID-reg-data-DnD-Creator.R
• Cleaning_CAPEX-survey-ID-DnD-CSV-Creator.R

Descriptive analysis

The following scripts were used to undertake descriptive analysis of BLADE data.

• Descriptive_Bunching: Analysis of bunching around the company income tax threshold
• Descriptive_Foreign-ownership: Analysis of the share of companies with significant degrees of foreign ownership

Econometric analysis

The following scripts were used to undertake the econometric analysis of BLADE data detailed in appendix B.9.

• Econometrics_Summary-stats.R: prepares summary statistics from econometric analysis
• Econometrics_DDD_model_downloader.R: prepares DDD model regression output from econometric analysis
• Econometrics_Dynamic_model_downloader.R: prepares event study model regression output from econometric analysis

Download the modelling scripts

BLADE script files (ZIP - 16.4 KB)

The following excel file contains tables of data used to make the figures within this report.

Chart data (Excel - 70.4 KB)

Preliminaries: Cover, Copyright and publication detail, Transmittal letter, Terms of reference, Disclosure of interests, Acknowledgements, BLADE disclaimer notice, AI disclosure and Contents

Executive summary

Recommendations

About this inquiry

• 1. Corporate tax reform to spur business investment
  • Barriers to business dynamism make us less productive
  • Reform to help firms invest, innovate and grow
  • Alternate company tax reform options
  • Comparing the reform options
  • Tax reform is never easy
• 2. Regulating to promote business dynamism
  • Our regulatory systems hinder business dynamism
  • Regulatory policy that supports business dynamism
  • Reform requires a considered implementation path to be successful
• Appendices
• A. Public consultation
• B. Supporting analysis for: corporate tax reform to spur business investment
  • B.1 A note on economic rent
  • B.2 Tax principles
  • B.3 Implementation considerations
  • B.4 Examples of cashflow taxation around the world
  • B.5 Options for reforming the corporate tax system
  • B.6 Worked examples of approaches to corporate tax reform
  • B.7 Overview and comparative analysis of modelling commissioned to support corporate tax design
  • B.8 Heterogenous firm literature
  • B.9 Behavioural responses to the company income tax
• C. Supporting analysis for: Regulating to promote business dynamism
  • C.1 Regulatory policy framework
  • C.2 Measuring progress toward better regulation
  • C.3 Survey of regulators and policymakers
  • C.4 Review of ‘adequate’ impact analyses
  • C.5 Regulatory stewardship guide
  • C.6 Costing of housing construction regulations
• Abbreviations
• References

Printed copies of this report can be purchased from Canprint Communications.