Andrew Leigh

E&OE TRANSCRIPT
RADIO INTERVIEW
ABC CANBERRA MORNINGS WITH ROSS SOLLY
MONDAY, 17 OCTOBER 2022

SUBJECTS: BUDGET ANNOUNCEMENTS, COMPETITION, MEDICARE RORTS AND BULK BILLING IN THE ACT.

ROSS SOLLY: As you may have heard yesterday, the federal government announced – or let the cat out of the bag with some infrastructure spending that will be unveiled in the mini-budget which is coming up. Now, a lot of money being splashed around the place everywhere except unfortunately it seemed for the ACT. Now, later onin the day, the government said, “Don’t worry, there is some stuff coming your way,” but they wouldn’t say what it was. So, I mean, I’m not cynical and I’m not suggesting a conspiracy theory, but maybe we just got forgotten about for a little while. I don’t know.

Andrew Leigh is the Assistant Minister for Competition, Charities and Treasury, and he joins me this morning. Andrew Leigh, good to talk to you.

ASSISTANT MINISTER FOR CHARITIES, COMPETITION AND TREASURY THE HOB DR ANDREW LEIGH: Great to talk to you, Ross. And sorry in advance – I won’t be able to spill the beans on the announcement that’s to come. But you can rest assured that with a Finance Minister from the ACT, the ACT is never forgotten in the Budget.

SOLLY: Well, that’s what I was a bit concerned about – how come everybody else got a little bit of the action yesterday and we were left sort of sitting on the subs bench waiting? The 90th minute came on, we still weren’t called on. We went into extra time – nothing happened. What happened?

Tax and Government in the 21st Century
Parliament House, Canberra
Thursday, 6 October 2022

One of Florence’s great city-states is the walled city of Sienna. Home to the famous Palio di Siena, an annual spectacle described as ‘the world’s most insane horse race’, its city building shows on the wall a painting known as ‘The Allegory of Good and Bad Government’. Painted by Ambrogio Lorenzetti in 1338 and 1339, it shows a well-governed society – happy people, productive enterprises, strong communities; and a badly-governed one – crime, garbage and dysfunction.

Miranda Stewart has chosen for her cover image of Tax and Government in the 21st Century a segment of Lorenzetti’s fresco depicting good government. It underpins her central message – and one that the rulers of Siena knew in medieval times – that taxation is an integral part of a good society.

Tax and Government in the 21st Century takes a broad sweep, both in time and space. It begins with the origins of modern tax systems, and the way that taxation was expanded to cover public goods. As the Bismarckian welfare state grew, so too did a need to fund unemployment insurance, health insurance and pensions. Stewart’s history is impressive, but I couldn’t help feeling that she perhaps gave too little attention to the role of war in expanding tax systems. For example, Australia’s federal income tax was introduced in 1915 (to pay for World War I) and massively increased in 1942 (to pay for World War II).

Budgeting, Miranda Stewart notes, is fundamentally an ethical exercise. She discusses the growing emphasis in government budgets on analysing the impact of taxation and spending policies on gender and inequality, and discusses the rise of green budgeting. Fittingly, as Treasurer Jim Chalmers has noted, a major focus of the October 2022 budget will be on wellbeing, and measuring what matters.

Another trend that Stewart notes is the rise of fiscal rules. In 1990, she notes, less than ten countries had fiscal rules. In 2021, more than one hundred countries had fiscal rules. But rule-following is imperfect, to say the least. Stewart concludes that fiscal rules are ‘frequently honoured in the breach’, such as when the 2008-2009 global recession causes many countries to breach rigid budget rules. Troublingly, she suggests that a result of this episode was less budget transparency, as some countries engaged in ‘creative accounting’ to conceal the breach.

The Australian
3 October 2022

Last year, academics from the University at Albany and the University of Missouri published a research paper arguing that company taxes should be abolished. Part of their argument was that transfer pricing by multinationals has become so widespread that policymakers should give up on corporate taxation altogether.

It’s a stark reminder that when it comes to multinational tax reform, what’s at stake is nothing less than the future of the corporate tax itself. I believe it is good economics to save corporate tax, but it will take deft policymaking and proper tax administration to do so.

Company taxes go back a over a century. The US introduced a corporate tax in 1898, but it was over-ruled by their Supreme Court a year later. In 1913, after they had sorted out their constitutional issues, the US company tax rate was set at a measly 1 percent.

Australia introduced our company tax in 1915. Then Attorney General and future Prime Minister Billy Hughes told parliament that it was “necessary to meet the great and growing liabilities created by the war”. Hughes put the issue bluntly: “I know of no other means whereby we could raise the necessary revenue.”

Today, while the essential purpose of corporate income tax remains the same, the challenges of collecting corporate taxes have grown enormously. Part of that arises because company taxes are simpler in an economy that makes physical products. Agriculture, mining and manufacturing have clear locations of production. But if a company’s output is digital, then it’s easier to artificially shift the location of production to the place with the lowest tax rate.

E&OE TRANSCRIPT
RADIO INTERVIEW
2GB MONEY NEWS
THURSDAY, 29 SEPTEMBER 2022 

LUKE GRANT (HOST): So back to our October budget and the balance between spending and saving. Of course, it's crucial. One man who's been a big part of the budget process unsurprisingly is the Assistant Minister for Competition Charities and Treasurer Andrew Leigh. Minister, welcome back to the show.

DR ANDREW LEIGH, ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY: Good to be with you.

GRANT: Nice to talk to you. Firstly, before we get to the budget, the government has just introduced legislation to crackdown on anti competitive behaviour and unfair contract terms. I note that the Small Business Ombudsman, Bruce Billson, has been effusive in his praise of the legislation. Can you take us through what's changing and how that's going to help small businesses operate, Minister?

LEIGH: Well, competition is a bedrock of a fair economy and we need competition to get better prices and more choice for Australian households. The government has been worried that too many big firms are starting to treat competition fines as just a cost of doing business, rather than a real deterrent to bad behaviour. So we're raising the maximum penalty from $10 million up to $50 million to make sure that big businesses do the right thing. And the other thing we're doing for small businesses is making unfair contract terms illegal. These are terms that are lopsided. So, for example, a big business might have a contract with a small supplier that says they can change the prices any time they like or they can get out of the contract anytime they like, although their smaller counterpart can't quit if they want to. So those unfair contract terms will now be illegal. There will be fines for putting those into contracts.

E&OE TRANSCRIPT
TELEVISION INTERVIEW
ABC AFTERNOON BRIEFING
THURSDAY, 29 SEPTEMBER 2022

GREG JENNETT (HOST): Well, we know full well that Australia's got an inflation problem at present, running at just under 7% and expected to sit at around that level for a little while. But we also now have a glimpse at more accurate data that tells us when that peak just might reach or be passed. Now, Competition and Charities Minister Andrew Leigh is responsible for the Bureau of Statistics, amongst other things, and he's with us now. Welcome back, Minister. This is a bit of a revolution, moving to monthly measurement. Why is more frequent measurement of inflation any more accurate or useful to governments, policy makers?

DR ANDREW LEIGH, ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY: Greg, it doesn't really matter at a time when inflation is low, as it's been for much of the past decade, but it really does matter at a time like the present, when we're trying to ensure that we get inflation under control. With the government is focusing on supply side reforms and the Reserve Bank focusing on demand side reforms, we really need that frequent updating. Australia has been an outlier in having only quarterly inflation figures. So full credit to David Gruen and his team at the ABS for bringing out these experimental monthly estimates.

JENNETT: So it's timely for the reasons you just outlined. We were going to get there anyway I think it's just that it's landed in a sweet spot. In what sense is it experimental? And how can we be certain that it is, in fact as accurate as the quarterly reporting?

LEIGH: Well, unlike other figures that the Bureau of Statistics brings out, the inflation number isn't revised, and that's because it's often locked into contracts, it has an immediate flow through to government payments and to business. And so all of those indexation measures will still continue to be based on the quarterly numbers for the time being. The Bureau needs to make sure that it's got those monthly figures right. But, Greg, it does show some interesting patterns across sectors. Over the last year, you've seen the price of new dwelling construction up 21%, fresh fruit and vegetables up 19%. Anyone who's been to the supermarket lately will know that one. And then you've got areas like communications, where prices are only up less than 2% over the last year. So some real divergence right across the economy.

Speech To The OECD Forum On Tax Administration
Thursday 29 September 2022 

Good morning, my name is Andrew Leigh and as Assistant Minister responsible for multinational tax, I am very pleased to have the opportunity to speak to you at this important forum.

I will begin by acknowledging the traditional owners of the land on which I am making my remarks from in Canberra, the Ngunnawal people, as well as where you are meeting today on the lands of the Gadigal people of the Eora Nation. I pay my respects to their elders past, present and emerging.

It’s a pleasure to be a part of this event supporting the Forum on Tax Administration’s work. The work of tax administrators is a crucial element of ensuring a well-functioning economy and a fair society.

As an Economics Professor, a lot of my work was in public finance, particularly at the intersection of taxation and inequality. I learned a great deal from my co-author Tony Atkinson, who worked across a large number of countries, drawing insights on big questions from looking at different nations. That’s one of the great strengths of the OECD: sharing ideas across countries in the interests of improving policies everywhere. If Tony Atkinson was still alive, I reckon he’d love to be joining your conference today, as he did with many other OECD events.

Second Reading Speech
House of Representatives
28 September 2022
Treasury Laws Amendment (More Competition, Better Prices)

This bill will deliver on the government's election commitment to help ease the cost of living by increasing penalties for breaches of competition and consumer laws and to provide greater protections for small businesses from unfair contract terms.

Schedule 1 to the bill will increase the maximum penalty for anti-competitive behaviour under the Competition and Consumer Act 2010(CCA) as well as breaches of the Australian Consumer Law (ACL)to ensure the price of misconduct is high enough to deter unfair activity and to ensure consumers retain a robust level of protection.

In 2018, the Organisation for Economic Co-operation and Development found that the average and maximum competition penalties in Australia are substantially lower than those in comparable international jurisdictions. As a result, there is a risk that a breach of the existing competition law could be seen as an acceptable cost of doing business by some large firms.

The amendments will increase the severity of Australia's penalty regime to be more comparable with international jurisdictions. As a result of this bill, we expect that, in some cases, courts will impose higher penalties for wrongdoing. We want courts to be able to ask themselves, 'Will this penalty deter lawbreaking by this company and others like it?

By strengthening penalties, Australia will be promoting competition and better corporate behaviour. Greater competition means better prices and more choice for Australian households. No business that complies with the law will face any additional compliance burden as a result of this increase in penalties.

Cost of Living
Matter of Public Importance
House of Representatives
27 September 2022

It is a true pleasure to rise on this matter of public importance. If you need any evidence of the ‘agility’ of those opposite, consider what happened at noon today. At noon today, the education minister was at this dispatch box announcing the government's Family Assistance Legislation Amendment (Cheaper Child Care) Bill. That bill would cut childcare costs for more than a million families. We've seen childcare costs go up 41 per cent in the last eight years. For a family on $80,000 with a child in care three days a week, the government support would be $14,000 a year as a result of the bill announced today. And what was the shadow treasurer doing at the very same time? He was tabling a matter of public importance claiming that the government didn't have a plan for cost of living. As you might say—or as he said himself—'Fantastic. Great move. Well done Angus.'

We on this side of the House are always happy to have a debate on cost of living. Under the coalition, we saw wages stagnate as a ‘deliberate design feature’ of their economic architecture. Under us, the very first decision of the Albanese cabinet was to urge a Fair Work decision giving a 5.2 per cent pay rise to minimum wage workers. We've also backed in a pay rise for aged-care workers and made clear the government would pay our fair share. Under them, we had scare campaigns about electric vehicles and claims that electric vehicles would end the weekend. Under us, we're cutting the tax rate on electric vehicles. You'd think that side of parliament would like a tax cut for electric vehicles—but no. They're voting against it, despite the fact that for every 10 kilometres you drive an electric vehicle you save a dollar, compared with driving a petrol vehicle. Under them, we had a renewables strike. Under us, we've just seen the climate change minister sign a key agreement with John Kerry which will unlock up to $2.9 billion of new renewables investment.

Under the Coalition, we saw the economy stagnate. We saw the start-up rate go down. We saw the rate of people starting new jobs go down. We saw market concentration go up. We saw mark-ups go up. Under us, we're taking those issues of economic dynamism and competition seriously. I'm going to be introducing a bill in this place tomorrow that, if passed, will raise the penalties on firms that engage in anticompetitive conduct and ban unfair contract terms—the sorts of contract terms that currently let large businesses get away with clauses such as unilateral termination or unilateral price increases. We on this side of the House stand on the side of small businesses and consumers.

HOUSE OF REPRESENTATIVES, PARLIAMENT OF AUSTRALIA, CANBERRA

FRIDAY, 23 SEPTEMBER 2022

Only one serving British monarch has ever visited Australia. Only one British monarch has ever had her head appear on Australia’s decimal currency. 87 percent of Australians have only ever known one monarch in our lifetimes.

If the first Elizabethan Age represented the English renaissance, the second Elizabethan Age is marked by its extraordinary longevity. As the Prime Minister pointed out this morning, it spanned 16 Australian Prime Ministers, starting with Menzies; 16 Governors General, starting with McKell, and included 16 visits to Australia, the first lasting two months.

Queen Elizabeth did not live here, but during her 70-year reign, she met more Australians and travelled to more parts of Australia than most Australians. She made a broadcast over the Royal Flying Doctors’ network from Broken Hill, opened the Opera House and this Parliament House, consoled Australians who had suffered loss, and sent thousands of congratulatory messages to centenarians and couples celebrating their diamond anniversaries.

E&OE TRANSCRIPT
RADIO INTERVIEW
ABC CANBERRA, ADAM SHIRLEY
TUESDAY, 13 SEPTEMBER 2022

SUBJECTS: Changes to Australia’s currency as a result of the passing of Queen Elizabeth II, changes to Parliament’s schedule, federal ICAC

ADAM SHIRLEY: Well, school holidays is not far off and I know if your parent care, guardian, uncle, aunt, always, well, how do I juggle the kids whilst still needing to work? That is going to be an issue now for MP staffers and Parliament Houseworkers because there will be now a sitting week, as you heard Prime Minister Anthony Albanese speak about yesterday during school holidays to make up for the time lost for this week, where the observance of the death of Queens mean that Parliament is not doing its regular business as was scheduled. Andrew Leigh's, Assistant Minister for Competition, Charities and treasury, soon and to talk with us in a moment about dollars and cents and whose face goes on some of our coins and notes from this point forward. But, Assistant Minister Leigh, thank you so much for your time on Mornings today.

ANDREW LEIGH: Pleasure, Adam. Great to be with you.

ADAM SHIRLEY: Let's talk about the juggle first. Many MPs staffers, permanent House workers have kids or other commitments in school holidays. I wonder, from your own perspective, how will you do the family juggle during that rescheduled sitting week?

ANDREW LEIGH: In parliamentary sitting weeks always put a bit more pressure on Gweneth and I think she'll be doing more than her fair share in this set of parliamentary sittings. The only excuse I've been able to offer her is ‘well, this only happens once every seven decades or so’. Hopefully it's not going to become a regular occurrence. I think it's good you're asking the question, because we ask a lot of our families and gives me a chance to publicly say thanks to Gweneth for the extraordinary work she does in helping raise our kids, particularly when parliamentary sittings are on.

ADAM SHIRLEY: So, amongst others, Green Senator, Larissa Waters, have said this is not family friendly when the Prime Minister pledged that this Parliament would be more family friendly, have any of you with kids in the Government said, hold on a second, Albo. Is there any other week we can use?

ANDREW LEIGH: Well, the challenge is that we're committed to a significant legislative agenda, including the National Integrity Commission, and so we do need to make up those sittings days and in doing so, now has been judged to be the most appropriate time. There's never a good time to put in additional sitting days, but people recognise these are extraordinary circumstances.