Andrew Leigh

REVIEW OF GOING INFINITE: THE RISE AND FALL OF A NEW TYCOON

In 2021, Forbes magazine put cryptocurrency mogul Sam Bankman-Fried on its cover. He had just debuted on their rich list. Forbes estimated his net worth at US$22.5 billion, ranking him the 32^nd richest person in the world. He was 29 years old.

Enter Michael Lewis. The Moneyball author first met Bankman-Fried when an investor friend asked him to do some due diligence on the entrepreneur. Intrigued, Lewis ended up writing a book about him. During the year that Lewis followed Bankman-Fried, his subject went from the world’s richest person under 30 to an arrest that led to seven criminal convictions for wire fraud, securities fraud and money laundering.

The son of two Stanford professors, Bankman-Fried loved mathematics and puzzles. After graduating from MIT, he worked at Jane Street, a high-frequency trading firm that encouraged its traders to hone their thinking by betting with one another. The point was to see how fast you could juggle probabilities and how adept you were with uncertainty.

At Jane Street, Bankman-Fried’s most ambitious numbercrunching exercise involved the 2016 US Presidential election, for which he designed a model that accessed local voting data more quickly than the television networks, and computed the probability that Hillary Clinton or Donald Trump would win. In a narrow sense, it worked spectacularly well, informing Jane Street traders that Trump would win before anyone else caught on. Throughout the campaign, Trump’s success had been inversely correlated with the strength of the sharemarket, so Jane Street bet several billion dollars against the S&P 500.

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TV INTERVIEW
ABC AFTERNOON BRIEFING WITH GREG JENNETT

THURSDAY, 9 NOVEMBER 2023

SUBJECTS: ATO Corporate Tax Transparency Report; Multinational tax reform; Stage 3 tax cuts; Optus outage.

GREG JENNETT: Now, new data out today gives us a better idea which companies are paying corporate tax in this country and how much of it, for that matter. In total, the biggest firms liable to pay company tax are paying more of it, but that doesn't mean they all pay it. Assistant Minister for Competition and Treasury Andrew Leigh joins us in the studio. Welcome back, Andrew.

ASSISTANT MINISTER FOR CHARITIES, COMPETITION AND TREASURY ANDREW LEIGH: Thanks Greg.

JENNETT: I think in foreshadowing this corporate tax transparency report today, you observed ‘when multinationals pay less, Australians pay more’. How so? Which taxes have Australians borne more of because of an underpayment by multinationals?

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RADIO INTERVIEW
2GB MONEYNEWS WITH SCOTT HAYWOOD

THURSDAY, 9 NOVEMBER 2023

SUBJECTS: Taxation; Inflation; Triathlons.

SCOTT HAYWOOD: Andrew Leigh is the Assistant Minister for Competition Charities and Treasury and has been driving the charge to make the tax system more fair. And he joins us for a chat on this Thursday night to discuss these issues. Andrew, great to chat to you again here on Money News.

ASSISTANT MINISTER FOR CHARITIES, COMPETITION AND TREASURY ANDREW LEIGH: Thanks, Scott. Great to be back with you and the MoneyNews team.

​HAYWOOD: Andrew, there's quite a lot to digest in the numbers today. Firstly, does this transparency about the state of corporation tax help to hold companies to account?

​LEIGH: Certainly does, Scott. Providing a bit of sunlight is never a bad thing. These corporate tax reporting rules came in place as a result of a decision by the Gillard Government, opposed by the Coalition, to require large firms to have published the amount of tax that they pay. I think it's appropriate that those firms report back to Australians as to the contribution they've made, given that they're beneficiaries of the infrastructure - legal and physical - that we have in this country. We're also working to tighten the rules around multinational tax avoidance, providing more resources to the tax avoidance task force, tightening up rules around debt deductions. And then next year we'll be moving to implement the 15 per cent floor under corporate tax worldwide, which will again make it harder for multinationals to avoid paying their fair share.

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PRESS CONFERENCE
CANBERRA

THURSDAY, 9 NOVEMBER 2023

SUBJECTS: ATO Corporate Tax Transparency Report; Multinational tax measures; Banning of unfair contract terms; Optus outage; High Court decision.

ASSISTANT MINISTER FOR CHARITIES, COMPETITION AND TREASURY ANDREW LEIGH: Today we have the announcement of corporate tax transparency data covering 2713 large Australian businesses. This is an important announcement, which reflects the Albanese Government's strong commitment to greater transparency in multinational tax. When multinationals pay less, Australians pay more. It's vital that Australians know how much tax our largest firms are paying. These laws were put in place by the Gillard Government despite opposition from the Coalition. The Coalition believe that this information could be kept secret. Labor believes this information should be in the public domain. Labor is committed to closing multinational tax loopholes and opening transparency. That commitment continues under the Albanese Government. We've moved to ensure that tenderers with large government contracts have to disclose their country of tax domicile. Public companies need to disclose where their subsidiaries are located. We're also moving towards putting in place a country-by-country reporting system that will be world-leading in its transparency.

Sunlight is the best disinfectant. The more information we have, the better we can be sure that large corporates are paying their fair share of tax. I want to acknowledge the hard work of the Australian Taxation Office Tax Avoidance Task Force and the work that they've done in engaging with large multinationals to make sure they pay their fair share. In recent times, we've seen agreements being struck with Rio and BHP that have seen the shutting down of offshore market hubs. Not only settling back taxes, but also ensuring that the Singapore marketing hub was no longer used in order to minimise taxes paid by those large corporates.

Labor currently has laws in front of the parliament that would close another loophole around the misuse of debt deductions. This involves companies setting up a subsidiary in a low tax jurisdiction, having that subsidiary make a loan to the Australian company. The interest on that loan is then deducted, allowing them to reduce their tax paid. Now, that's not an arrangement that's available to typical Australian small business looking to export into the region. And that means if we don't close it down then Aussie small businesses are competing with one hand tied behind their backs. The reforms we are putting in place around debt deductions aren't just about increasing revenue. They're also about fairness and ensuring fair competition. Firms should be competing based on who can offer the best products, the best service, the best offering to the Australian people and not exploiting the latest tax loophole.

One other announcement we have got today. With Minister Julie Collins, we welcome the fact that from today, laws outlawing unfair contract terms come into effect. Right now, firms can include unfair contract terms in their contracts. They're not enforceable, but it's not illegal to put those dodgy terms in. That means that small businesses are often faced with a contract on a ‘like it or lump it’ basis. That includes unfair contract terms that a small business may not be willing to litigate against the large firm. And so they comply with an unfair contract term. Those unfair contract terms might include a unilateral ability to change prices, or allow the larger firm to cancel the contract on a whim. That will no longer be possible under laws that take effect from today. This is about protecting consumers and small businesses and providing small businesses a level playing field with which to engage in a modern economy.

The Hon Stephen Jones MP

Assistant Treasurer And Minister For Financial Services
The Hon Andrew Leigh MP

Assistant Minister For Competition, Charities And Treasury

Assistant Minister For Employment
Joint Media Release

Holding Large Corporates To Account On Tax

The Albanese Government is committed to holding large corporates to account by enhancing transparency to ensure that they are paying the right amount of tax.

The Australian Taxation Office (ATO) has today published its annual Corporate Tax Transparency report, disclosing the tax performance of 2,713 corporates entities, revealing they paid $83.8 billion in income tax in 2021-22.

Australians expect all taxpayers, from large multinationals to individuals, to pay the right amount of tax. The ATO’s report provides insights about the corporate tax system and the tax performance of multinationals and large public and private businesses. The report provides transparency about the tax paid by large companies and keeps them accountable to the community and stakeholders.

The Albanese Government boosted funding for the ATO’s Tax Avoidance Taskforce in the October 2022-23 Budget by around $200 million a year over 4 years from 1 July 2022 and extended it by a further year from 1 July 2025.

This investment has bolstered ATO crack downs on tax dodging by multinational enterprises, large Australian public and private groups, and wealthy individuals operating in Australia.

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RADIO INTERVIEW
6PR MORNINGS WITH GARY ADSHEAD
WEDNESDAY 8 NOVEMBER 2023

SUBJECTS: Interest rates; Cost of living measures; Unemployment; Trade with China; Encouraging volunteering.

GARY ADSHEAD (HOST): Dr Andrew Leigh is the Federal Assistant Minister for the Treasury, and he joins me on the line. Thanks very much for your time, Andrew. 

ASSISTANT MINISTER FOR CHARITIES, COMPETITION AND TREASURY ANDREW LEIGH: My pleasure, Gary. Great to be with you and your listeners. 

ADSHEAD: I mean obviously the RBA's decision yesterday on Melbourne Cup Day of all days is not helping you or your Government's argument around trying to keep a lid on cost-of-living expenses for people, is it?

ICELAND TAX TREATY BRINGS NEW TRADE OPPORTUNITIES

Australia’s first tax treaty with Iceland is now in force, bringing new opportunities to trade, invest and connect with its thriving economy.

Iceland has one of the highest Gross Domestic Product per capita ratios in the world.

The tax treaty which comes into effect today facilitates easier access to the Icelandic market at a lower cost through reduced tax rates, lower compliance costs and reduced instances of double taxation.

This treaty will also support the Government’s plan to make multinationals pay their fair share of tax through added integrity measures and mechanisms.

This will facilitate greater cooperation and information sharing to detect and combat tax evasion.

Tax treaties also help reduce tax uncertainty and administrative burden for individuals looking to study, live and work overseas, thereby facilitating labour mobility.

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RADIO INTERVIEW
ABC CANBERRA BREAKFAST WITH ADAM SHIRLEY
WEDNESDAY 8 NOVEMBER 2023

SUBJECTS: Effect of smartphones on mental health; Impact of latest interest rate rises; Measures to curb inflation; Mortgage switch fees; Superannuation increase.

ADAM SHIRLEY (HOST): And on phones and having a smartphone, ubiquitous, in your pocket right now, no doubt. Andrew Leigh, Member for Fenner and Federal Assistant Minister for Treasury, stated this at the start of the month: “Our family rule is no smartphone until you turn 15, which means our boys will basically be the last in their social groups to get one. We hope they’ll thank us in a decade or two.”

Dr Andrew Leigh, Member for Fenner, good morning to you.

ASSISTANT MINISTER FOR CHARITIES, COMPETITION AND TREASURY ANDREW LEIGH: Good morning, Adam. I am acutely aware of the irony of talking about the value of not getting kids a smartphone on a day when so many Australians want to get access via their smartphones. But there you have it.

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TV INTERVIEW
ABC NEWS BREAKFAST WITH MICHAEL ROWLAND
WEDNESDAY 8 NOVEMBER 2023

SUBJECTS:  Optus network; Interest rates; Cost of living measures; Stage 3 tax cuts.

MICHAEL ROWLAND (HOST): Okay, we're going to turn to our next story now. The impact of latest interest rate rise, the 13th since the rate hike cycle began last year. And bring in the Assistant Minister for Treasury, Andrew Leigh. Minister, thank you so much for joining us.

ASSISTANT MINISTER FOR CHARITIES, COMPETITION AND TREASURY ANDREW LEIGH: Pleasure.

ROWLAND: We’ll on to rate rises in a moment. But what, if anything, does the government know about what's going on with Optus this morning?

LEIGH: Nothing at this stage that I've heard, Michael. Certainly it's up to Optus to quickly rectify this with its customers. It's clearly causing chaos across not only Melbourne's train network, but also for many people who rely on their mobile phones, it's just a reminder of how reliant we are on this instant connectivity. And like so many other Australians, I'm hoping the systems are back up quickly.

MEDIA RELEASE

Appointment – Independent Reviewer, Food And Grocery Code

The Albanese Government has reappointed Mr Christopher (Chris) Leptos AO as the part-time Independent Reviewer of the Food and Grocery Code (the Code) for a three-year period.

The Code was introduced in 2015 to lift the standard of commercial conduct between the major supermarkets, wholesalers, and their suppliers. On 3 October 2020, further amendments were introduced to improve the operation of the Code, which included enhancing dispute resolution processes available to suppliers by requiring signatories to appoint Code Arbiters with the authority to resolve supplier complaints and issue binding compensation orders of up to $5 million. Woolworths, Coles, Aldi, and Metcash are signatories to the Code and are bound by it.

A government appointed Independent Reviewer role was also established to review complaints to ensure that suppliers are afforded due process throughout the dispute resolution process.