The Deadweight Costs of Capital Taxation in Australia

  • W. Erwin Diewert
  • Denis Lawrence
Part of the Studies in Productivity and Efficiency book series (SIPE, volume 1)


Taxation reform is currently the focus of attention in Australia. The ramshackle wholesale sales tax was replaced on 1 July 2000 with a goods and services tax and the Review of Business Taxation has recommended extensive changes to some aspects of capital taxation. These include the reduction of the company tax rate from 36 per cent to 30 per cent and the removal of accelerated depreciation. However, many of these changes particularly those affecting capital taxation — are being made in the absence of detailed quantification of the effects of both the old and new tax regimes.


Capital Stock Total Factor Productivity Profit Function User Cost Deadweight Loss 
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Copyright information

© Springer Science+Business Media New York 2002

Authors and Affiliations

  • W. Erwin Diewert
    • 1
  • Denis Lawrence
    • 2
  1. 1.Department of EconomicsUniversity of British ColumbiaVancouverCanada
  2. 2.Meyrick and AssociatesHawkerAustralia

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