Australia's company tax rate of 30 per cent is globally uncompetitive and at risk of becoming more so, the Business Council of Australia says.
The chief executive of the business lobby group, Jennifer Westacott, says Australia's global competitiveness ranking had fallen from tenth a decade ago to 21st today, behind New Zealand.
"Our 30 per cent company tax rate is uncompetitive, and it's likely to become more so as other countries continue to lower their rates," Ms Westacott told the Australian Financial Review Business Summit on Wednesday.
"Except for the US, everyone of our competitors has reduced their corporate tax rate over the last decade - in other words, we are slipping behind or competitors."
The federal government is considering a raft of possible tax reforms ahead of the federal election later this year.
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The Business Council last week released a discussion paper calling for lower personal and company income tax rates to boost the economy by billions of dollars.
It wants the company tax rate to be cut immediately from 30 per cent to 28.5 per cent, and a further reduction to 25 per cent over the next five years.
