In his mid-year budget update, Joe Hockey reneged on a promise to crack down on corporate tax avoidance by closing an important loophole. So at a time when he's taking an ax to Medicare, pensions and the foreign aid budget, he's still found room to give money back to big firms. Nice.
HOCKEY BREAKS PROMISE TO TAX MULTINATIONALS
Despite almost doubling the 2014-15 deficit, Treasurer Joe Hockey has still managed to sneak in another giveaway for multinational corporations.
Monday’s Budget update shows the Government is going back on its commitment to introduce a targeted anti-avoidance measure which would stop companies siphoning profits offshore.
Yet again the Treasurer has shown that he is happy to let big companies off the hook while hacking into foreign aid, schools, hospitals and pensions.
His priorities stink worse than a plate of Christmas prawns that have been left out in the sun.
Upon taking office, Joe Hockey ditched Labor’s plan to prevent the abuse of s25-90 but promised his government would tighten the net in other ways:
“We will instead introduce a targeted anti‑avoidance provision after detailed consultation with stakeholders.”
Joe Hockey and Arthur Sinodinos - Joint statement - 6 November 2013
The Budget update clearly shows the Government has now broken that promise. Joe Hockey has given up on stopping these artificial debt and deduction arrangements altogether.
In the process, he has missed an opportunity for more government revenue.
The contrast with Labor could not be clearer.
Unlike Joe Hockey, we are determined to ensure that multinational corporations pull their weight.
In government, Labor announced that we would abolish s25-90 of the tax act because there was evidence that companies were abusing these deductions to artificially reduce their tax bills.
Closing this loophole was projected to add $600 million to Federal Government revenue.
Labor will fight to protect the living standards, jobs and opportunities of low and middle income Australians.
Labor believes in a strong economy that delivers for all Australians and doesn’t leave people behind.
WEDNESDAY, 17 DECEMBER 2014
MEDIA CONTACT: JENNIFER RAYNER 0428 214 856