Our outperforming economy
Australia consistently grows faster than other advanced economies. During 2019 to 2024, our economy is forecast to have grown by 11.1%. This will outpace the average of 7.8% growth for advanced economies. Over this period, we will have matched growth in the US, almost tripled the expansion in the Euro Area, and recorded growth that is 5 times the rate of the UK.
Australia is also forecast to continue to outperform our peers over the next 5 years to 2029. As a major regional exporter, our outlook partly reflects the prosperity of our major trading partners. This includes India, China and the Association of Southeast Asian Nations (ASEAN)² economies.
Australia is a low-tax country
Australia has one of the lowest overall tax rates. Our tax revenue is equal to just 29% of GDP, which is 5 percentage points lower than the 34% average for OECD countries.¹ Australian taxes on goods and services are equivalent to 7% of Australia’s GDP, compared to 11% across OECD countries. Australia’s corporate tax rate is typically lower due to various deductions, credits and incentives.
Research and development (R&D) tax incentives significantly reduce rates for innovative companies. A small company that invests $100,000 in R&D may be eligible to receive a cash refund of over $40,000. Australia's corporate tax laws are stable and predictable. This helps to reduce costs, liketax agreements with other countries that prevent tax duplication.
More about fundamentals
Chapter 1 in the Benchmark Report provides further data and insights into economic and business fundamentals.
