Proposed cuts to company tax have come under fire from former federal treasurer Peter Costello for being less effective at boosting the economy than personal tax cuts.

A key plank in the federal government's agenda for economic growth is a proposal to cut the corporate tax rate for most companies from 30 per cent to 25 per cent.

Corporate leaders have backed the plan, particularly in the wake of US President-elect Donald Trump's proposal to slash the company tax rate in that country.

But Mr Costello, who is now Future Fund chairman, said personal tax cuts rather than just company tax cuts were necessary to ensure a more productive and competitive economy.