The second issue of the Economic Roundup for 2011 contains, amongst other things:
– a survey of average rates of company tax across industries; and
– an examination of the rise in household savings in Australia and its implications for public policy.
The report on average tax rates, not surprisingly, concludes that some of the
variation in effective tax rates can be explained by special tax treatment such
as tax offsets and rebates and R&D tax concessions. However, after allowances for these items, average tax rates vary widely across industries, in the authors view, distorting investment choice and economic performance.
The examination of household savings opines that the increase in savings may be a
return to historical levels. If this is a semi-permanent patter, of course, it has important ramifications for GST and hence State and Territory revenues.
The report on average tax rates, not surprisingly, concludes that some of the variation in effective tax rates can be explained by special tax treatment such as tax offsets and rebates and R&D tax concessions.
However, after allowances for these items, average tax rates vary widely across industries, in the authors view, distorting investment choice and economic performance.
Items of interest arising from the analysis are:
– the investment in tangible intangibles are disadvantaged relative to tangible assets;
– the impact of debt versus equity financed investment and ownership issues; and
– differences in depreciation for accounting and tax purposes, and economic depreciation.
Other issues covered in the economic roundup publication are:
– The Australian economy and the global downturn Part 1: Reasons for resilience
– The Australian economy and the global downturn Part 2: The key quarters
– The rise in household saving and its implications for the Australian economy
– Australia 2011: opportunities, challenges and policy responses.
– Opportunities, challenges and implications for policy
– The resources boom and structural change in the Australian economy
– Where are we in terms of heightened regulation and why are we here?
– Key themes from Treasury’s Business Liaison program
– Percy Spender: an early Keynesian