--- title: Creating a more dynamic and resilient economy description: Explore the PCs interim report on corporate tax reform and regulatory efficiency to enhance Australia's economic dynamism and resilience. image: https://insights.wlm.com.au/hubfs/Creating%20a%20more%20dynamic%20and%20resilient%20economy.png --- [![WLM_Logo_RGB_Orn50](https://insights.wlm.com.au/hs-fs/hubfs/WLM_Logo_RGB_Orn50.png?width=521&height=169&name=WLM_Logo_RGB_Orn50.png "WLM_Logo_RGB_Orn50")](http://wlm.com.au/) - [About](https://www.wlm.com.au/about/) - [Services](https://www.wlm.com.au/services/) - [Tax & Compliance](https://www.wlm.com.au/services/tax-and-compliance/) - [Strategy & Advice](https://www.wlm.com.au/services/strategy-and-advice/) - [Clients](https://www.wlm.com.au/clients/) - [Construction & Trades](https://www.wlm.com.au/clients/construction/) - [Family Business](https://www.wlm.com.au/clients/family-business/) - [Insurance & Financial Services](https://www.wlm.com.au/clients/insurance-and-financial-services/) - [Renewable Energy & Environment](https://www.wlm.com.au/clients/renewable-energy-and-environment/) - [Service-based & Other Business](https://www.wlm.com.au/clients/service-based-and-other-business/) - [Insights & Case Studies](https://insights.wlm.com.au/blog) - [Blog](https://insights.wlm.com.au/blog) - [Buying a property with a business partner](https://explore.wlm.com.au/buying_a_property_with_a_business_partner_download) - [How to minimise tax & risk with business structure](https://explore.wlm.com.au/business-structure-whitepaper-download) - [Contact](https://www.wlm.com.au/contact/) [Login](https://clientlogin-us2.karbonhq.com/4Frhz6cPZq6r) - [About](https://www.wlm.com.au/about/) - [Services](https://www.wlm.com.au/services/) - [Tax & Compliance](https://www.wlm.com.au/services/tax-and-compliance/) - [Strategy & Advice](https://www.wlm.com.au/services/strategy-and-advice/) - [Clients](https://www.wlm.com.au/clients/) - [Construction & Trades](https://www.wlm.com.au/clients/construction/) - [Family Business](https://www.wlm.com.au/clients/family-business/) - [Insurance & Financial Services](https://www.wlm.com.au/clients/insurance-and-financial-services/) - [Renewable Energy & Environment](https://www.wlm.com.au/clients/renewable-energy-and-environment/) - [Service-based & Other Business](https://www.wlm.com.au/clients/service-based-and-other-business/) - [Insights & Case Studies](https://insights.wlm.com.au/blog) - [Blog](https://insights.wlm.com.au/blog) - [Buying a property with a business partner](https://explore.wlm.com.au/buying_a_property_with_a_business_partner_download) - [How to minimise tax & risk with business structure](https://explore.wlm.com.au/business-structure-whitepaper-download) - [Contact](https://www.wlm.com.au/contact/) # News, views and more ![Dan McGrath](https://insights.wlm.com.au/blog/Dan%20McGrath) **Dan McGrath** 10 September 2025 — 3 min read ### Share [mailto:?subject=Creating%20a%20more%20dynamic%20and%20resilient%20economy&body=https://insights.wlm.com.au/blog/creating-a-more-dynamic-and-resilient-economy](mailto:?subject=Creating%20a%20more%20dynamic%20and%20resilient%20economy&body=https://insights.wlm.com.au/blog/creating-a-more-dynamic-and-resilient-economy) [mailto:?subject=Creating%20a%20more%20dynamic%20and%20resilient%20economy&body=https://insights.wlm.com.au/blog/creating-a-more-dynamic-and-resilient-economy](mailto:?subject=Creating%20a%20more%20dynamic%20and%20resilient%20economy&body=https://insights.wlm.com.au/blog/creating-a-more-dynamic-and-resilient-economy) ![Creating a more dynamic and resilient economy](https://insights.wlm.com.au/hubfs/Creating%20a%20more%20dynamic%20and%20resilient%20economy.png) ## Creating a more dynamic and resilient economy The Productivity Commission (PC) has been tasked by the Australian Government to conduct an inquiry into creating a more dynamic and resilient economy. The PC was asked to identify priority reforms and develop actionable recommendations. The PC has now released its interim report which presents some draft recommendations that are focused on two key areas: - Corporate tax reform to spur business investment - Where efficiencies could be made in the regulatory space (ie, cutting down on red tape) The interim report makes some interesting observations and key features of the draft recommendations are summarised below.   ## Corporate tax reform The PC notes that business investment has fallen notably over the past decade and that the corporate tax system has a significant part to play in addressing this. The PC is basically suggesting that the existing corporate tax system needs to be updated to move towards a more efficient mix of taxes. The first stage of this process would involve two linked components: - Lower tax rate: businesses earning under $1 billion could have their tax rate reduced to 20%, with larger businesses still subject to a 30% rate. - New cashflow tax: a net cashflow tax of 5% should be applied to company profits. Under this system, companies would be able to fully deduct capital expenditure in the year it is incurred, encouraging investment and helping to produce a more dynamic and resilient economy. However, the new tax is expected to create an increased tax burden for companies earning over $1 billion.   ## Cutting down on red tape The interim report notes that businesses have reported spending more time on regulatory compliance – this probably doesn’t come as a surprise to most business owners who have been forced to deal with multiple layers of government regulation. Some real world examples include windfarm approvals taking up to nine years in NSW while starting a café in Brisbane could involve up to 31 separate regulatory steps. The proposed fixes include: - The Australian Government adopting a whole-of-government statement committing to new principles and processes to drive regulation that supports economic dynamism. - Regulation should be scrutinised to ensure that its impact on growth and dynamism is more fully considered. - Public servants should be subject to enhanced expectations, making them accountable for delivering growth, competition and innovation. These are simply draft recommendations contained in an interim report so we are a long way from any of these recommendations being implemented. However, the interim report provides some insight into areas where the Government might look to make some changes to boost productivity in Australia. The PC is inviting feedback up until 15 September on the interim report before finalising its recommendations later this year.   ### WLM can help The Productivity Commission’s interim report has outlined draft recommendations aimed at boosting Australia’s economy, focusing on corporate tax reform and cutting back red tape. While still in early stages, these changes could significantly impact how businesses operate and invest. At WLM Accounting, we keep a close eye on proposed reforms so our clients are prepared ahead of time. If you’d like to understand how these potential changes might affect your business, [contact WLM today.](https://www.wlm.com.au/contact/)     [![Your free eBook guide to business structuring](https://hubspot-no-cache-ap1-prod.s3.amazonaws.com/cta/default/6037207/e520877a-d8f2-4174-849c-3565a233feff.png)](https://hubspot-cta-redirect-ap1-prod.s3.amazonaws.com/cta/redirect/6037207/e520877a-d8f2-4174-849c-3565a233feff) ##### Make a comment [Previous](https://insights.wlm.com.au/blog/a-win-for-those-carrying-student-debt) [Next](https://insights.wlm.com.au/blog/uber-decision-highlights-payroll-tax-issue-for-medical-practices-and-other-business-relying-on-contractors) ## Wealth matters. Ask us how we can help you boost yours. [Contact WLM Financial](http://wlm.com.au/contact/) ## Subscribe Stay up to date with tax and accounting news, and subscribe to our newsletter. 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