Andrew Leigh

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RADIO INTERVIEW

RADIO NATIONAL DRIVE

THURSDAY, 5 MARCH 2015

SUBJECT/S: Intergenerational Report

PATRICIA KARVELAS: To discuss today's Intergenerational Report from the Labor party's perspective, we're now joined by Dr Andrew Leigh, the Shadow Assistant Treasurer. Welcome to the program.

ANDREW LEIGH, SHADOW ASSISTANT TREASURER: Thanks Patricia. Good to be with you.

KARVELAS: Now Labor says this is a political document, but isn't that the point of an Intergenerational Report, as Mathias Cormann has just explained? He said they are released by the Treasurer, and he conceded that there is an element of a political case being established about what the alternative would be if there was a different government elected. 

LEIGH: I don't think that is the purpose of the Intergenerational Report, Patricia. I certainly don't deny that there's a role for politics in some forms of public conversation. But the way in which Peter Costello – to give him his due – envisaged the Intergenerational Report was to talk about those big multi-generational challenges. There's some parts of the Intergenerational Report that I think make interesting reading. There's a useful discussion of the drivers of health spending, for example, but then there's so much of it that seems to be painfully partisan and which is misrepresenting the trajectory that Australia would have been on under Labor. The IGR has not used the independent Pre-Election Economic and Fiscal Outlook, which is the right baseline to use at the change of government, but instead used as the Labor baseline Joe Hockey's first budget update, which included the $9 billion he gave to the Reserve Bank and the $1 billion handed back to multinationals. By misrepresenting what Labor would have done, you're then having a debate which is not based on the facts but which is based on pure rhetoric. 

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RADIO INTERVIEW

RADIO NATIONAL DRIVE

MONDAY, 02 MARCH 2015

SUBJECT/S: Labor’s multinational tax plan.

PATRICIA KARVELAS: Federal Labor today unveiled a policy to shut down legal loopholes allowing some multinational companies to send profits overseas and avoid paying taxes in Australia. But the government says the proposal will cost jobs. Joining me now is Shadow Assistant Treasurer Andrew Leigh; welcome to RN Drive.

SHADOW ASSISTANT TREASURER ANDREW LEIGH: Thanks Patricia, good to be here.

KARVELAS: Can you explain really simply how your proposal works?

LEIGH: Absolutely. Our proposal is aimed at dealing with multinationals not paying their fair share of tax using a particular instrument known as debt shifting. 

KARVELAS: Ok, well obviously on principle no-one would disagree with that, but Joe Hockey and Treasury have said that it will cost jobs. You might say that Joe Hockey has a political motive for saying it, but the Business Council of Australia also says that company tax measures you've proposed have the potential to slow economic growth and diminish competitiveness. How do you prevent that, and how do you answer their concerns?

LEIGH: Patricia, I'm not sure why it ought to cost jobs to say to firms that their debt deductions in Australia can't be bigger than their overall group owes to third parties. It seems like a reasonable rule, and certainly it's a rule that the OECD has recommended in a recent discussion paper. The G20 has talked about debt deductions, and indeed when he gave a $1.1 billion tax break back to multinationals just after coming to office, Joe Hockey promised to put in place a targeted anti-avoidance provision. Of course, he then backflipped on that. We've heard a lot of rhetoric from Joe Hockey but we haven't actually got any meat. We haven't seen any measures that add to the budget bottom line. That's why Labor has taken this very unusual step, in the first half of this parliamentary term, of putting a costed plan on the table.

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TV INTERVIEW

SKY LUNCHTIME AGENDA

MONDAY, 2 MARCH 2015

SUBJECT/S: Labor’s multinational tax avoidance package.

LAURA JAYES: Today Labor has announced a new package of ideas on countering multinational profit shifting. The Shadow Assistant Treasurer Andrew Leigh joins me now – Andrew, this is something countries right around the world have been grappling with for quite some time, so why is it suddenly so simple?

ANDREW LEIGH, SHADOW ASSISTANT TREASURER: Well Laura, it has become more complicated as firms have moved towards virtual production. Three of the five biggest companies in the world are information technology companies and for firms like that, the location of production is less clear than it was in the old agriculture and manufacturing world. So the tax laws need to keep up and when Labor was last in office we put in place a $4 billion package to tackle multinational profit shifting.

JAYES: Yes on that package, what is different from that package to what we're seeing now?

LEIGH: Well there's an element of that package which the Government chose not to proceed with. At the same time as cutting the wages of the cleaners who clean their offices, they gave a billion dollars back to multinationals.

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ONLINE INTERVIEW

BREAKING POLITICS

MONDAY, 02 MARCH 2015

SUBJECT/S: Leadership, opinion polls, Medicare co-payment, private healthcare costs, troops to Iraq, Intergenerational report, Labor’s multinational tax package, ATO funding.

HAMMER: Andrew Laming is Liberal MP for Bowman in Queensland, Andrew Leigh is the Labor member for Fraser here in the ACT and also importantly today, the Shadow Assistant Treasurer, we'll move onto your portfolio response in a minute. But first, Andrew Laming, I must ask you about leadership, there's a new poll, a good poll for the Government. Does that show that Tony Abbott is rebounding or does it show that voters have already moved on.

ANDREW LAMING, FEDERAL MEMBER FOR BOWMAN: The different positive polls of course, the standard line is the only one that matters is election day, but I can guarantee there will be a fair bit of high-fiving in offices like mine and around the country to see improving polls. It's a positive signal and you'd always rather them going that way than the other way.

HAMMER: So is Tony Abbott completely safe at least until after the budget?

LAMING: I think, anywhere further than 50 metres from this building. I'm sure that within this building we'll still be talking about it all week, that's the nature of Parliament House.

HAMMER: But outside?

LAMING: The bigger issue now is starting to take over. You've got the intergenerational report, and Andrew's announcement makes a valuable contribution today and a whole range of other issues, from country of origin labelling to overseas deployment, need to become the issues for this week.

HAMMER: Ok, Andrew Leigh, is this the best possible result for Labor? Tony Abbott remaining in the job for the foreseeable future?

ANDREW LEIGH, SHADOW ASSISTANT TREASURER: Chris, whether the polls go up, down or sideways you'll never get me saying anything other than the fact that they're not a particularly useful metric. What I do think though is that Australians, as Andrew said are focused on numbers. Numbers such as the fact that unemployment has gone up and that confidence is going down.

THE HON. BILL SHORTEN

LEADER OF THE OPPOSITION

MEMBER FOR MARIBYRNONG

 

CHRIS BOWEN MP

SHADOW TREASURER

MEMBER FOR MCMAHON

 

ANDREW LEIGH MP

SHADOW ASSISTANT TREASURER

SHADOW MINISTER FOR COMPETITION

MEMBER FOR FRASER

 

BIG MULTINATIONALS TO PAY FAIR SHARE UNDER LABOR

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PRESS CONFERENCE

CANBERRA

MONDAY, 02 MARCH 2015

SUBJECT/S:  Multinationals to pay fair share under Labor; Liberal Party’s Unfair Budget; Foreign investment changes; Intergenerational Report; Human Rights Commission; Iraq; Polls

BILL SHORTEN, LEADER OF THE OPPOSITION: Good afternoon everybody, I'm here this afternoon with our Shadow Treasurer and Shadow Assistant Treasurer to announce Labor's plan for a level playing field for multinational companies to ensure that they pay their fair share of taxation, just like everyone else has to. The following are the principles which underpin our announcement. How can we ask Australians to work hard and pay tax if the rules aren't fair for multinationals too? How can Australian businesses compete if they pay more tax in Australia than big multinationals?

In the last Budget the Liberal Nationals handed back more than $1 billion to big multinationals, but cut the pensions at the same time. In the last Budget they reopened the door for big multinationals to avoid paying tax in this country, but they put a tax on going to see the doctor. Under the Liberals, some large multinationals pay less, while young Australians will pay more for their university degrees. Last year, one of the world's largest companies paid only $80 million in Australian tax on local revenue of just over $6 billion; this isn't good enough. I believe everyone works hard in this country, seeks to grow their businesses creating national wealth for all. That means all of us have an obligation to pay our fair share of taxation. Our tax system shouldn't get softer the higher it goes. How much tax you pay shouldn't depend upon how much you can afford to pay your tax lawyer and specialist accountants.

Today I joined Bill Shorten and Chris Bowen in announcing the first of Labor's significant policy plans. Our multinational tax package aims to ensure that all companies doing business in Australia - big and small - pay their fair share. Here's the details:

THE HON BILL SHORTEN MP

LEADER OF THE OPPOSITION

MEMBER FOR MARIBYRNONG

CHRIS BOWEN MP

SHADOW TREASURER

MEMBER FOR MCMAHON

ANDREW LEIGH MP

SHADOW ASSISTANT TREASURER

SHADOW MINISTER FOR COMPETITION

MEMBER FOR FRASER

 

MEDIA RELEASE

BIG MULTINATIONALS TO PAY FAIR SHARE UNDER LABOR

Labor 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.

Labor’s plan will bring at least $1.9 billion back to Australia in tax from big multinationals over the next four years, according to the Parliamentary Budget Office.

This package includes:

Changes to the arrangements for how multinational companies claim tax deductions

Greater compliance work by the ATO to track down and tackle corporate tax avoidance

Cracking down on multinational companies using hybrid structures to reduce tax

Improved transparency and data matching.

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DOORSTOP

CANBERRA

MONDAY, 02 MARCH 2015 

SUBJECT/S: Labor’s multinational tax avoidance package.

ANDREW LEIGH, SHADOW ASSISTANT TREASURER: When Labor was last in office, Wayne Swan and David Bradbury put together a $4 billion package of measures to tackle multinational profit shifting. This is an issue that many around the world have been concerned with – whether it's the OECD, the G20, or even the Australian Tax Office. But the Abbott Government has dropped the ball. When they came to office, they gave more than $1 billion back to multinationals – firms that need a tax handout from the Abbott Government like Prince Philip needs a knighthood. Over the last year, Labor has been working on our own policies. Figuring that the Government wasn't going to act fairly, we felt we needed to put together our own package. Today, Bill Shorten, Chris Bowen and I will be announcing a $1.9 billion package that will deal with some of the forms of multinational profit shifting. This is a government which has given a billion-dollar handout to multinational firms while cutting the wages of the cleaners who clean their offices. Labor will take a fairer approach, one that ensures a level playing field for businesses and a fair deal for Australian taxpayers. Happy to take questions.

Keeping Immigration in Belconnen and Tony Abbott's disregard for our National Capital 

23 February 2015

My office is currently running a campaign to keep the Department of Immigration and Border Protection in Belconnen. In conjunction with ACT MLAs Yvette Berry, Mary Porter and Chris Bourke, we are campaigning against the Abbott government's flagrant disregard for Canberra. You would expect that the Abbott government would be proud that, when the OECD looked across the advanced world to see which was the most liveable region in the advanced world, it settled upon Canberra. Yet, at every turn, the Abbott government seems to be looking to denude and damage this fantastic city.

Tax and Superannuation Laws Amendment No. 7 Bill 2014

25 February 2015 

This bill makes seven changes to tax laws. The first schedule puts in place an ongoing fix to the issue of excess non-concessional superannuation contributions. The previous Labor government enacted similar measures on a temporary basis in 2012 and 2013. The Inspector-General of Taxation recommended a change of this nature.

The second schedule is a non-controversial machinery of government change which moves the tax investigative and complaint-handling functions of the Commonwealth Ombudsman to the Inspector-General of Taxation and merges that function with the Inspector-General's existing function of conducting systemic reviews. That ensures that the Inspector-General of Taxation has the power to take up individual cases as well as systemic matters.

Senate Estimates always reveals one or two key facts about what the government has been up to. Today was no exception...

MEDIA RELEASE

HOCKEY'S SPIN BILL SPINNING OUT OF CONTROL

The Abbott Government has spent at least $650,000 of taxpayer money to work out how to spin its long-overdue Tax White Paper.

This news was revealed today in Senate Estimates, and comes on top of the discovery that the government is gearing up to spend over $300,000 on advertising for the Intergenerational Report.

The Tax White Paper was set to be released in December but the Abbott Government has been sitting on it since then.