Funding public education rather than company tax cuts is the way to boost Australian living standards, according to a progressive think tank.
A report from The Australia Institute on Thursday says there is no relationship between company tax rates and living standards.
Based on an analysis of OECD data, it found more spending on public education was correlated with higher living standards.
"The data presented here clearly suggest that if there were a choice between funding company tax cuts or more education spending, governments would be well-advised to concentrate on the latter," the institute's senior research fellow David Richardson said.
Labor has committed to fully funding the Gonski education reforms if it wins on July 2, arguing education is key to economic growth.
The coalition on the other hand is promising company tax cuts delivered over 10 years to stimulate the economy.
Opposition Leader Bill Shorten said the report blew Prime Minister Malcolm Turnbull's economic plan to pieces.
"Wages are flat-lining and living standards are falling, and Mr Turnbull's only solution is to give more taxpayer money to big business and the banks," he told AAP.
"Labor wants to invest in people, and the Liberals want to blow up the budget with a $50 billion giveaway to big business."
