LESS ISN’T MORE ON MULTINATIONAL TAX
Joe Hockey’s only idea for tackling multinational profit shifting is to cut taxes for big multinationals and then cross his fingers they’ll pay them.
The Government’s tax discussion paper clearly states that base erosion and profit shifting pose an increasing risk to Australia’s corporate tax base.
It acknowledges that loopholes and complex offshore structures are letting some big multinationals avoid paying their fair share in Australia.
Despite pointing out the significance of the problem, Joe Hockey’s discussion paper is completely silent on serious ideas to fix it.
This is exactly the kind of backwards priorities we’ve come to expect from a government that handed $1.1 billion back to big multinationals while taking $6,000 a year from some of Australia’s most vulnerable families in its first Budget.
The Treasurer’s ideas-lite approach is in sharp contrast with Labor’s measured, costed and robust proposal for tackling multinational tax avoidance.
Informed by advice from the OECD and tax experts, our package zeros in on specific debt deduction arrangements which let companies avoid paying their fair share.
The independent Parliamentary Budget Office says our plan would see big multinationals contribute $1.9 billion more to Australia over the next four years.
The best the Treasurer is offering with this discussion paper is a thought-bubble that would blow a permanent hole in Australia’s Budget.
Australia needs a plan to win investment from the world. And that plan should focus on helping big firms see why it’s worth buying into Australia, not on cutting tax deals that sell us all short.
If Joe Hockey wants some real ideas for fixing base erosion and profit shifting, he need look no further than the package Labor has already put on the table.
While the Treasurer is still musing about what Australia’s corporate tax settings should be, Labor has already done the hard work of putting together a plan to ensure everyone pays their fair share.
MONDAY, 30 MARCH 2015
MEDIA CONTACT: JENNIFER RAYNER 0428 214 856