Selling a tax cut for companies is difficult politically, as there is no direct identifiable benefit for voters. In an address before The Tax Institute yesterday, a Treasury official has acknowledged this while outlining potential economic benefits of reducing the corporate tax rate.

Many other countries have much lower corporate tax rates compared with Australia and I am not just referring to tax havens or other countries with low tax reputations. For example, the UK is already down to 20% and dropping to 18% over coming years. This couldn't happen if it doesn't make economic sense.

We don't operate in a vacuum - Australia needs to ensure it remains an attractive place to do business for our trading partners and comparative corporate tax rates is one important factor.