I am surprised the Government is even bothering to investigate the possibility of reforming company tax to only tax super profits, similar to the new minerals resource rent tax, as reported here:
Swan tax shake-up targets super rich
This would cause major budgetary and cash management problems for the Commonwealth, because it would most likely make company tax revenue even more volatile than currently. Thinking back to the financial crisis, I seem to recall that a major reason for the loss of tens of billions of dollars of tax revenue across the budget forward estimates was the massive decline in company tax. If Treasury replaced our current company tax with a super profits tax, I expect revenue would slump even further during downturns, as very few companies would record super profits during downturns.
Furthermore, the tax would be administratively complex and the Tax Office would end up in interminable academic debates with individual companies about the level of profit above which the super profits tax applies.
As a former Treasury man it is painful for me to say this, but the Government ought to reject Treasury’s advice on this tax reform.
Queensland Economy Watch 
You beat me to that post. However I suspect that this proposal has grown from the most recent summit idea of the Guvmint repaying previous taxes if there are subsequent losses. This was portrayed as a response to the two-speed economy but i’m not sure on that?!
Example of a company that may pay no tax would be Qantas, profitable but with very low return on assets. Only last month the populist hordes were laying into Qantas because of its profits!
haha, great example. I can imagine the outrage on A Current Affair if corporate villains like Qantas paid no tax.
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