The Ralph Report Depreciation Proposals and Investment Neutrality
The Review of Business Taxation chaired by Mr John Ralph has suggested sweeping changes to business taxation in Australia. In particular it has been proposed that accelerated depreciation provisions be removed to finance a reduction in the company tax rate. If some degree of accelerated depreciation is to be retained, it is suggested that this should involve a uniform loading on depreciation rates for all assets. The aim is to provide a more uniform treatment of assets with different economic lives. This paper examines the neutrality of these proposals for unincorporated enterprises and companies owned by Australian shareholders.
|Date of creation:||May 1999|
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- King, Mervyn A, 1974. "Taxation and the Cost of Capital," Review of Economic Studies, Wiley Blackwell, vol. 41(1), pages 21-35, January.
- Paul A. Samuelson, 1964. "Tax Deductibility of Economic Depreciation to Insure Invariant Valuations," Journal of Political Economy, University of Chicago Press, vol. 72, pages 604.
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"Inflation and the Choice of Asset Life,"
NBER Working Papers
0253, National Bureau of Economic Research, Inc.
- Benge, Matt, 1998. "Depreciation Provisions and Investment Incentives under Full Imputation," The Economic Record, The Economic Society of Australia, vol. 74(227), pages 329-45, December.
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