Documents from the Prime Minister’s own department confirm what Treasury officials revealed yesterday – the Treasurer is on track to break his promise of introducing a Diverted Profits Tax before the end of the year.
Speaking on Radio National this morning, Mr Morrison repeated the explicit promise he made immediately prior to the federal election to introduce a Diverted Profits Tax by the end of this year to tackle multinational tax avoidance:
"We have budget revenue measures which are about improving the integrity of the tax base, whether it be our diverted profits tax legislation which comes in later in the year.”
– Scott Morrison, 20 October 2016.
This is where it starts to get awkward. Because according to two excellent sources – the Treasurer’s own department and the Prime Minister’s department – Mr Morrison will not keep that promise.
In response to Estimates questions about the diverted profits tax from LNP Senator Ian Macdonald, Treasury officials said “the legislation is yet to be drafted.” [Senate Economics Legislation Committee, 16.38.32, 19/10/2016]
With just over three sitting weeks to go until the end of the Parliamentary year, his own Department has not drafted the legislation that Mr Morrison has twice promised will be introduced this year.
Not only that, according to the Department of Prime Minister and Cabinet’s final list of legislation to be introduced this spring, no diverted profits tax legislation is to be introduced this year either.
The first law of holes states that “If you find yourself in a hole; stop digging.” Mr Morrison has a record of announcing tax measures but not enacting them. Now he is announcing tax measures that he can’t enact.
Scott Morrison is all sound and fury he’s attacking low-paid workers. But it comes to taking on the big end of town, all we get is ScoMo in SloMo.
Labor calls on the Turnbull Government to stop making excuses, draft its diverted profits tax legislation, and bring it to the parliament in the next sittings week.
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THURSDAY, 20 OCTOBER 2016