Matt Williams (Hindmarsh, Liberal Party) Share this | Hansard source

I rise to speak on the Tax and Superannuation Laws Amendment (Better Targeting the Income Tax Transparency Laws) Bill 2015 and on the very sensible and worthy amendment of the member for Fraser. The current bill, as it stands, I think, is basically punitive, illogical and emotion driven. It is out of the politics of envy type of thinking targeted at people and companies, private companies, who are successful. It also does not actually raise any extra taxation funds but it just reflects the politics of envy and a desire to name and shame individuals for doing what every company tries to do—that is, be successful and make a profit. Profit is not a dirty word but it seems like there is a sentiment behind this legislation we are attempting to amend that will fix everything by naming and shaming.

At the moment, private companies, once they reach an income of $100 billion, supply their private information to the Australian tax office and it becomes public. Total income, net income after costs and income tax payable being published for individual private companies is the current status. This legislation invades those private companies' sensitive personal business information. It lets their competitors know very important information. Public companies currently have all that reporting in their company statements. This is not addressing public companies; this is addressing private companies. That is why people keep them private because there are some people who want to maintain their privacy. There is nothing new that they have to report to the tax office—that goes without saying—all companies have to do that. But what is the point of publicly naming their income, their costs and all their business things to the general public? I just cannot see the point of it—this idea that by naming and shaming people, you will get more tax out of them.

If you are a private company, you have to be operating and governanced in Australia. The regulation of the company has to be within Australia so all the reporting is made to the tax office. Everyone is aware of thin capitalisation, transfer pricing, marketing hubs and the transferring of payments that the member for Lilley just spoke about, but that is not what this legislation is all about. This is about invading private citizens' information, which is given in confidence to the tax department—correctly given to them—and it changes the principle that has been around for over 70 years. If you are a holding company or a company that is controlled offshore, this does not excuse you. If you are an overseas controlled entity, you still have to report. This information can become public, but this is about Australian citizens and I think it is an offence that we have it. This amendment will address an essential issue of privacy for hardworking Australians.

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