Research Discussion Paper – RDP 2025-01 Are Investment Tax Breaks Effective? Australian Evidence

Contents

• Introduction
• Overview of Investment Incentives in Australia
• Literature
• Data
• Identification Strategies
• Results
• Robustness
• Conclusions
• Appendix A: Policy Episodes
• Appendix B: Summary Statistics
• Appendix C: Testing for the Effect of Corporate Tax Changes
• Appendix D: Additional RDD Figures
• References
• Copyright and Disclaimer Notice

Nu Nu Win would like to gratefully acknowledge the support of the Sir Roland Wilson Foundation PhD Scholarship Program. Thanks to seminar participants at the RBA, Australian Treasury, Department of Prime Minister and Cabinet, and the 2023 ANU Public Finance Conference. The views expressed in this paper are those of the authors and should not be attributed to the Reserve Bank of Australia, Australian Treasury or the Australian Government. Any errors are the sole responsibility of the authors.

Endnotes

Australian National University and Australian Treasury [*]

Economic Research Department, Reserve Bank of Australia [**]

Crawford School of Public Policy, Australian National University [***]