The Ralph Review of Business Taxation, which submitted its recommendations to the Australian Government on 30 July 1999, represented an important event in the corporate tax reform process in Australia (Cooper et al., 2002, p. 20; Gilders et al., 2004, p. 16). Some of its key recommendations were designed to promote equity in the corporate tax system by removing several major tax incentives (Ralph, 1999, p. 15). For example, accelerated depreciation, which favors capital intensive firms, was recommended for removal. The Ralph Review also recommended a phased-in reduction of the corporate tax rate as trade-off to firms for the removal of accelerated depreciation. The Australian Government implemented these key Ralph Review recommendations, and they came into law in the Income Tax Assessment Act 1997, applying from the 1999/2000 tax year
