Labor will crack down on tax tricks used by multinationals and millionaires to minimise their income tax bill, including a new measure to close the loophole that sees the top end of town funnelling money out of Australia into tax havens to get lower tax rates.
This tax loophole is only used by less than 0.001% of taxpayers – but will deliver $430 million to the budget bottom line over the medium term.
This election is choice – better schools and hospitals with Labor, or tax loopholes and tax handouts for the top end of town with the Liberals.
We want a world-class healthcare system that includes cancer treatments and dental care for our pensioners through Medicare. We want fair access to childcare for middle-and-working class Australians. We want to properly fund our schools. And we will pay for our priorities by making multinationals pay their overdue fair share.
Labor will ensure the top end of town can’t use certain trusts to avoid paying their fair share using distributions to people overseas.
Currently, certain trusts are used to deliberately distribute profits and income to people overseas. Some distributions through these arrangements are to non-residents in tax havens, including the Cayman Islands.
This means that big companies and millionaires set up certain trust arrangements to send money overseas to friends and families to get a tax rate well below the corporate rate of 30%.
Labor will end this and crack down on the misuse of certain trusts for deliberate tax avoidance purposes.
We will align the tax treatment of distributions from certain fixed trusts to non-residents with treatment of distributions from companies and public unit trusts.
The measure is a simple, targeted approach. It does not impact Australian tax residents. It complements Labor’s proposal for a minimum tax of 30% on distributions from discretionary trusts to address income splitting.
Widely-held, low-risk investment trusts such as Managed Investment Trusts are completely exempt and will retain their current concessional rates of withholding tax where applicable.
This is a targeted anti-avoidance measure to ensure the top end of town can’t use certain trusts to avoid paying their fair share using distributions to people overseas.
Only Labor will make multinationals pay their fair share and closing tax loopholes used by the top end of town.
The Liberals have failed to properly crack down on multinational tax minimisation. They are too busy handing out bigger tax loopholes to the top end of town and cutting schools and hospitals.
If you want to get wages moving, not more tax loopholes for the rich – vote Labor.
If you want a fair go for all Australians - vote Labor.
This election is a choice between Labor’s plan for better hospitals and better schools vs bigger tax loopholes for the top end of town under the Liberals.
After six years of Liberal cuts and chaos, our united Labor team is ready.
Authorised by Noah Carroll ALP Canberra.
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