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Business tax breaks don’t spur investment: RBA

Michael Read
Michael ReadEconomics correspondent

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Instant asset write-offs promoted by both Labor and the Coalition have done little to increase investment, according to research by the Reserve Bank of Australia that finds company tax cuts would probably be more effective.

Growth in business investment has been lacklustre over most of the past decade. Investment sat at just 12.5 per cent of GDP last year, well beneath the high of 18 per cent reached during the mining boom.

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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com

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    Original URL: https://www.afr.com/policy/economy/business-tax-breaks-don-t-spur-investment-rba-20250205-p5l9nz