In a desperate attempt to distract attention away from their $50 billion tax cut to large companies, the Turnbull government attempted today to pretend that it is serious about reducing multinational profit-shifting.
It is not.
As usual with this government, you have to follow the numbers, not the spin. The Coalition’s diverted profits tax will raise just $200 million over the forward estimates.
This is a tiny fraction of their company tax giveaway, and significantly smaller than Labor’s crackdown on debt deductions.
At the last election, Labor’s policy was estimated by the Parliamentary Budget Office to raise $1.6 billion over the forward estimates.
When it was announced in the 2016 budget, Labor signalled that we would support the diverted profits tax. We welcome any Coalition attempts to close loopholes, no matter how small.
But if the government was serious about getting tough on multinationals, they would do something about the one in three big companies that pay no tax.
They would back Labor’s crackdown on multinationals using debt to shift profits offshore.
They would back our call for a banking Royal Commission.
This is a government that is strong with the weak, but weak with the strong.
THURSDAY, 9 FEBRUARY 2017
MEDIA CONTACT: TAIMUS WERNER-GIBBINGS 0437 320 393