Hockey loses $7.2 billion by refusing to accept Labor's multinational tax plan - Joint Media Release

BILL SHORTEN, CHRIS BOWEN & ANDREW LEIGH

MEDIA RELEASE

HOCKEY LOSES $7.2 BILLION BY REFUSING TO ACCEPT LABOR’S MULTINATIONAL TAX PLAN

New analysis from the Parliamentary Budget Office shows Labor’s multinational tax package will generate growing revenue beyond the forward estimates, with Labor’s policy now projected to raise $7.2 billion over the next ten years.

Labor’s plan will shut down loopholes which allow big multinational companies to send profits overseas, ensuring they pay their fair share of tax, just like everyone else has to.

The package is forecast to raise $1.9 billion over the next four years, but the PBO now forecasts this to grow to $7.2 billion over ten years as loop holes are closed, and a fairer share of tax is paid by multinationals.

Yet with just four weeks left until the Budget, the Treasurer is still refusing to take up Labor’s offer of a detailed briefing on these tax measures. Shadow Treasurer Chris Bowen wrote to Joe Hockey almost a month ago offering to step him through our package, but so far the response has been silence. 

It is not fair that Australians work hard and pay tax while big multinationals get to play by different rules.

It is not fair that Australian businesses are paying more tax in Australia than big multinationals.

While Tony Abbott and Joe Hockey seem determined to see low and middle income Australians pay more GST, Labor wants to make sure big multinationals pay their fair share of tax.

In the past week, the Senate inquiry into corporate tax avoidance has heard evidence of billions of dollars being shifted offshore so that companies can shrink their Australian tax bills.

Labor's plan includes stronger rules to stop big multinationals from double-dipping on tax exemptions and deductions. It also puts new limits on the amount of debt that companies can claim tax deductions against.

Joe Hockey could add $7.2 billion to the budget bottom line straight away by putting our measures through the Parliament. He would have Labor’s support to do so because we believe in tax fairness. 

This is a complex and difficult policy area, but we need to act now to make sure big multinationals start paying their fair share of tax.

With the clock ticking down to the Budget, the Treasurer should swallow his pride and adopt Labor’s package to ensure all big multinationals pay their fair share.

MONDAY, 13 APRIL 2015


Showing 1 reaction

Please check your e-mail for a link to activate your account.

Stay in touch

Subscribe to our monthly newsletter

Search



Cnr Gungahlin Pl and Efkarpidis Street, Gungahlin ACT 2912 | 02 6247 4396 | [email protected] | Authorised by A. Leigh MP, Australian Labor Party (ACT Branch), Canberra.