Corporate windfall $2.18bn a year flowing offshore

More than 40% of the benefit of the Coalition government’s $48bn company tax cut will go offshore to shareholders of multinational corporations and foreign tax authorities, a new report has found.

The report by academics at the University of Technology Sydney, commissioned by GetUp, reviewed 250 of the largest payers of company tax in 2013-14. 

It found cutting the corporate tax rate to 25% would result in $2.18bn a year flowing offshore in dividends to overseas-based investors. That represents 40% of the total cost of the $48bn tax cut over 10 years.