Two days after the Australian Federal Election and with the results in doubt, the proposed company tax cuts are now at risk. The UK's response to enormous economic uncertainty post-Brexit may be to slash its company tax rate to almost tax-haven levels, coupled with an increased focus on trading with China. There are lessons and warnings for Australia here. The UK is an important trading partner, but also a competitor for investment. Headline tax rates really matter to global companies looking to invest in the Asia-Pacific region - Australia's 30% company tax rate is increasingly unsustainable.
UK Chancellor of the Exchequer George Osborne is planning to cut Britain's corporation tax to less than 15 per cent in an attempt to offset the shock to investors of the country's decision to leave the European Union, the Financial Times reported on Sunday.Osborne was also quoted saying he would put more effort into Britain's relationship with China and lead another trade visit later this year, after the shock referendum decision.