The recently released OECD Corporate Tax Statistics 2026 report shows that Australia’s tax rates are among the highest in OECD countries. Australian companies pay an effective average tax rate of 28.5%, second only to Colombia, and above the average OECD rate of 22%. At just 9%, Hungary has the lowest corporate tax rate, part of a wider strategy to boost foreign investment and stimulate economic growth.

The tax rates reflect our reliance on corporate tax, according to an AFR article, with company tax collections in Australia equivalent to 6.4% of Australia’s GDP in 2022, above the OECD average of 3.9%.

The Australian rates have been locked in for decades, with the last significant reduction in 2002. Attempts to reduce it further in 2018 led to a two-tier system, with businesses having a turnover of less than $50 million receiving a reduced rate. 

Just this year, the government considered changes as part of the Federal Budget, looking to the Productivity Commission for suggestions on attracting company investment without an increased deficit. A proposal to cut the rate to 20% for small and medium-sized companies –  funded with a 5% cash-flow tax on all businesses that could be reduced through higher investment – hit a wall, with pushback from larger companies. 

Read the full report here.

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General Advice Warning:

The information in this blog is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether the information is appropriate for you and seek professional advice before making any financial decisions.
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