Greater tax transparency recommended in aged care - Media Release

SENATOR JENNY MCALLISTER

SHADOW ASSISTANT MINISTER FOR FAMILIES AND COMMUNITIES

SENATOR FOR NEW SOUTH WALES

ANDREW LEIGH MP

SHADOW ASSISTANT TREASURER

SHADOW MINISTER FOR COMPETITION AND PRODUCTIVITY

SHADOW MINISTER FOR CHARITIES AND NOT-FOR-PROFITS

SHADOW MINISTER FOR TRADE IN SERVICES

MEMBER FOR FENNER

GREATER TAX TRANSPARENCY RECOMMENDED IN AGED CARE

A Senate Committee has recommended greater tax transparency for for-profit aged care providers. 

The Senate Economics References Committee report into Financial and Tax Practices of For-Profit recommends that for-profit aged care organisations that are in receipt of large sums of public money should be subject to more rigorous transparency protocols.

Australians have the right to know the tax practices of large corporations.

While the Coalition has been paralysed by years of infighting and indecision, Labor has been making serious decisions on tackling tax transparency and multinational tax avoidance, including a Senate bill lowering the transparency threshold for private companies from $100 million to $200 million – a Bill the Government buried in the House.

Greater public scrutiny of the tax practices of for-profit providers in aged care will promote greater accountability and fairness. Recommendations made by the committee offer a sound first step in tackling the holes in financial reporting of the sector.

Labor welcomes the committee’s recommendations to strengthen the framework for tax transparency and accountability.

In relation to transparency the Senate inquiry recommended: 

  • Australian Accounting standards board implement international accounting standards board’s conceptual framework;
  • Increase public transparency of aged care providers’ financial information held by the Department of Health;
  • Convert the existing voluntary tax transparency code to a mandatory code for all large and medium corporations operating in Australia.

Senator McAllister said that now more than ever greater transparency is needed in the aged care sector.

“It is essential that the public can adequately scrutinise the financials of for-profit providers who are receiving public funds.”

“The senate committee recommendations provide steps to bolster transparency and support the work of the Royal Commission into aged care.”

The Committee has recommended that the Royal Commission into Aged Care consider the tax and financial structures of Aged care providers in determining whether there is any impact on quality of care received by older Australians.

Dr Leigh said that only Labor has a plan to increase tax transparency, to close loopholes and crack down on dodgy deductions.

“The Coalition should now adopt Labor’s full package to crack down on multinational tax avoidance.”

ENDS

Authorised by Noah Carroll, ALP, Canberra.


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