Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Hansard source

I thank the Prime Minister. I note the plan of those opposite and I note the fact that they believe that they will raise, I think, some $1.6 billion or thereabouts in revenue from that particular initiative relating to the thin capitalisation rates. But what those opposite do not understand—or maybe they do and they have just decided to ignore it—is that the type of model that they have put forward is out of step with the OECD rules that were brought down just within the last week, and I will tell you why: because what this does not do is focus on the bespoke nature of the investments and the legitimate nature of the company operations here in Australia.

What those opposite want to do when it comes to multinational taxation arrangements is take a blunt instrument to a very sensitive area, and what they particularly do not understand is that if you use the ratios that they want to apply to these issues then they will be putting at risk serious infrastructure investment in this country, because you will be applying a higher interest cost than you otherwise would. So those opposite want to put at risk the pension fund investments of other countries, who want to invest in an infrastructure in this country, because they want to use a blunt instrument to just grab revenue.

Ms Plibersek interjecting—

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