Andrew Leigh

Tax Superannuation Laws Amendment (2014 Measures No. 5) Bill 2014

House of Representatives 

17 June 2015

Labor's position is to oppose this bill. Labor opposed these measures when they were included in the Superannuation Laws Amendment (2014 Measures No. 5) Bill 2014. Moving them from TSLAB 5 of 2014 to TSLAB 3 of 2015 in no way reduces Labor's in-principle opposition to these measures. We oppose the abolition of the seafarer tax offset and the reduction in the research and development tax credit. The abolition of the seafarer tax offset does not have the support of the Australian shipping community. As the Australian Shipowners Association has noted:

The Seafarers Tax Offset … helped to reduce the operating costs of Australian vessels, increased the competitiveness of Australian shipping and provided significant opportunity for employment of Australians in international trades … the impact [of abolition] is severe with regard to future opportunity.

Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill 2015

House of Representatives

16 June 2015 

The Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill 2015 contains seven schedules, and I should say from the outset that Labor will be supporting the bill. But the context of this debate provides an opportunity to go to some of the issues raised within this bill which go to the cessation of the first home saver accounts scheme and the government's commitment to housing affordability; to the abolition of the dependent spouse tax offset and the government's view, somewhat inconsistent, on this scheme; and to offshore banking units and the government's frankly lacklustre approach to tackling multinational profit shifting.

On the issue of housing affordability we have seen a great deal of talk from the government, but unfortunately much of that talk has managed to put much of Australia offside. It was only last week that we had the Treasurer telling a press conference that if housing were unaffordable in Sydney no-one would be buying it. As has been pointed out, one can easily take 'housing' out of that sentence and replace it with any noun you like. If diamond encrusted iPhone covers were unaffordable, no-one would be buying them, you might well say. But of course such a statement would be ridiculous.

LABOR READY TO MAKE TASMANIA THE INNOVATION ISLE

Joint release with Senator Lisa Singh

Federal Labor will encourage more Tasmanian school students to learn coding, entice more Tasmanian university students into studying science, and create the incentives for more people to start up their own firms in an effort to reduce the state’s unemployment.

“New firms generate a disproportionately large share of the jobs in any modern economy, so part of the answer to reducing unemployment in Tasmania has to be building its culture of science and research to generate start-ups,” said Dr Andrew Leigh, the Shadow Assistant Treasurer.

“Labor’s vision is to take advantage of Tasmania’s intellectual and infrastructure capacity and make it one of the first choices in Australia for science, research and new innovation industries.

ABBOTT GOVERNMENT FIDDLES AS CANBERRA OFFICES EMPTY

The release of BIS Shrapnel data on empty office space across Canberra has added to concern about the future of the Belconnen Town Centre if the Department of Immigration is moved elsewhere.

As another week passes without news on the potential move, the BIS Shrapnel data shows Canberra now has one of the highest commercial property vacancy rates in the country.

More than 100,000 square metres of space – enough for over 7,000 workers – is vacant in Commonwealth-leased buildings alone.

Our right to know if big firms pay their fair share, Daily Telegraph, 19 June

Here’s a question for you: who pays for your nearest hospital? Whose money fixed the road you use to get to work? Who shells out for the books and computers that keep kids learning at the local school?

You do, of course. We all contribute to funding these things through the tax that comes out of our fortnightly pay. Recently though, it has become clear that some of us are contributing more than others.

Someone earning the average Australian income pays about 21 per cent in tax; a small business pays the corporate rate of 30 per cent on their profits. But in the past few years there have been increasingly regular reports about huge companies paying just a fraction of that.    

For instance, in a recent Senate inquiry we heard evidence that one big multinational firm may have paid as little as 2 per cent tax on billions of dollars in revenue. If the average Australian wage earner paid tax at that rate instead of their standard 21 per cent, they’d be paying almost $15,000 less a year.

Here's to a sharing economy, joint op-ed with Member for Newcastle Sharon Claydon, Newcastle Herald, 17 June

On the second floor of an unassuming building on Beaumont Street in Hamilton, Justin Hales and his team (he’s the one inside the caravan in the photograph) are trying to shape the future of self-drive holidays. Their start-up, Camplify.com.au, lets owners of caravans and campervans rent them directly to other users.

Justin’s family used to take camping holidays when he was a child, and he fondly recalls their annual trips to the Breakers Caravan Park in Port Macquarie, where his family would park their blue and white Viscount caravan amid their neighbours, and enjoy the sense of community and freedom. His favourite part of it, Justin says, was knowing he was sleeping on the kitchen table every night. 

ABBOTT GOVERNMENT RUNNING INTERFERENCE FOR AUSTRALIA’S BIGGEST FIRMS

The Abbott Government has finally come clean and admitted it is working to gut Labor’s tax transparency laws simply to keep big companies out of the spotlight.  

Assistant Treasurer Josh Frydenberg says he is worried about unleashing ‘the politics of envy’ if the Australian Tax Office releases data about companies earning over $100 million.

What he actually means is that Australians might be envious of how little tax some of these firms really pay.

Silence on the agenda at environment inquiry, Pro Bono, 16 June

For the past few years, the Australian Marine Conservation Society has been fighting hard to stop millions of tonnes of dredge spoil being dumped onto the natural wonder that is the Great Barrier Reef.

Sometimes their fight has taken them out in the community – collecting signatures on petitions and making phone calls to let Australians know what’s happening. Other times it has taken them into courtrooms, where they’ve stood with other environment groups in seeking injunctions against the harmful dumping.

From time to time, it has also brought the Society into conflict with big resource companies and state and federal Liberal governments via the media and other public forums. 

Today in the federal Parliament, the House of Representatives Environment Committee will meet to hear evidence on whether groups like the Society should continue to have Deductible Gift Recipient (DGR) status under Australia’s tax law. There are almost 600 environmental groups that currently qualify for this status; it allows them to offer tax breaks when accepting donations from the Australian community. 

E&OE TRANSCRIPT

DOORSTOP INTERVIEW

PARLIAMENT HOUSE, CANBERRA

TUESDAY, 16 JUNE 2015

SUBJECT/S: Tax transparency; Budget; Housing affordability.

ANDREW LEIGH, SHADOW ASSISTANT TREASURER: Today we've heard very clearly from the Government why they want to wind back tax transparency. Previously they'd suggested it was about kidnapping, until it became clear they'd sought no advice from the Australian Federal Police. Now we have Josh Frydenberg arguing that we can't report on the tax affairs of companies earning over $100 million because it might lead to envy. Australians might be envious of how little tax big firms pay. It's pretty extraordinary that when they cut the wages of cleaners, this Government doesn't think at all about the feelings of the people they're affecting.

But when it comes to tax transparency for large firms, suddenly they go all Dr Phil. They want to offer a space on the couch and a foot rub; they're worried about the hurt feelings of the companies that are revealed to be paying too little tax. Let's be clear: tax transparency is about fairness. Small businesses in Australia need to know they're competing on a level playing field. They need to know that large multinationals aren't exploiting debt shifting loopholes that are unavailable to Australian small businesses. If you're pro-small business in Australia, you have to be in favour of Labor's multinational tax package and you have to be in favour of tax transparency laws that make it absolutely clear who is paying their fair share of tax, and who isn't. Happy to take questions.

E&OE TRANSCRIPT

ONLINE INTERVIEW

FAIRFAX BREAKING POLITICS

MONDAY, 15 JUNE 2015

SUBJECT/S: Government paying people smugglers; Citizenship changes; Marriage equality; Tony Abbott’s Royal Commission

CHRIS HAMMER: Andrew Leigh is the federal MP from Fraser here in the ACT and he's also the Shadow Assistant Treasurer. Good morning, Andrew.

SHADOW ASSISTANT TREASURER ANDREW LEIGH: Good morning Chris, how are you?

HAMMER: Now what answers do you want to hear from the Government about what has been happening with people smugglers?

LEIGH: Chris, we really need to know whether or not Australia has been paying people smugglers. This goes to the very heart of the Government's competence on asylum seeker policy and their willingness to be honest with the Australian people. What more important issues could there be in public policy than whether you're doing your job well and whether you're being honest about it?