Hockey sees a future without company tax

Banks and business may anticipate a few surprises in the taxation discussion paper the Australian Government plans to release in April.

Company tax may be on the wane as part of the business tax mix, Treasurer Joe Hockey foreshadowed during a question and answer session at a business lunch in Sydney on Friday.

The goods and services tax may also be vulnerable.

"Technology and global free trade makes me wonder whether there will be a GST anywhere in the world, [or] indirect taxes of any sort anywhere in the world because of global commerce and the transmission of goods," Hockey said.

"Increasingly, services over the internet by suppliers based offshore is undermining the indirect tax base of any country.

"The same applies to company tax, which makes me wonder if company tax will be around in 40 years' time.

"Because increasingly, major companies that are multinationals, supplying particularly intellectual property, can do it from low-tax jurisdictions.

"We might be able to work together as I was driving very hard at the G20 last year, cracking down on multinationals when they're operating out of low-tax or no-tax places.

"And we're all working together at the G20 to crack down on that but it doesn't stop other countries offering tax breaks of ten per cent, compared to our 30, and increasingly that differential comes into play."