Andrew Leigh (Fraser, Australian Labor Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Government is about priorities, and this government it is a study in contrasts. While they are cracking down on jobless young Aussies, they are letting some big companies do their own audits. While they are cutting foreign aid that provides vaccines to some of the world's poorest kids, they are giving a $1.1 billion tax break to some of the world's richest multinationals. While they are raising superannuation taxes on millions of low-paid Australians who earn less than $37,000 a year, they found money in the budget for a new measure to increase the non-concessional superannuation cap—a measure that only benefits those that put more than $150,000 a year into superannuation.

The Abbott government is cutting compliance in the Tax Office, which will leave us with less revenue because, according to evidence given to a committee in this place, 'Every dollar spent on compliance raises up to six dollars in additional revenue.' The Abbott government says they do not have money for programs like Youth Connections, building multicultural communities, Indigenous legal services and a wage indexed pension, yet they can find over $1 billion to fund debt shifting in offshore banking units for multinationals.

Recently in parliament, a number of my colleagues came together for the launch of a new report—Who pays for our common wealth? Tax practices of the ASX 200part funded by United Voice. I would like to thank Terri Butler, the member for Griffith; Sharon Claydon, the member for Newcastle; Andrew Giles, the member for Scullin; Tony Zappia, the member for Makin; Lisa Chesters, the minister Bendigo; and Senators Bullock, O'Neill, Singh and Lines for joining us for the launch of this important report. Mark Zirnsak, the key author, David O'Byrne from United Voice and Anthony Carlson from United Voice spoke about their perspective on this vital issue of multinational profit shifting. It is an issue which is now being further investigated by Senator Dastyari, whose economics committee is conducting an inquiry into corporate tax avoidance and has kicked off by asking 40 ASX listed companies to explain the taxes they pay.

Firms have expressed some concern about the public information available on the tax that is paid. I can understand this concern. We should, as the old saying goes, have our own opinions but not our own facts. But, for that debate to be grounded in facts, it is vital that the coalition commits to tax transparency and commits to the measures that Labor put in place to see firms with a taxable income of over $100 million dollars report their taxable income, total income and tax paid. But we had the Assistant Treasurer, Senator Sinodinos, as he then was, in January suggesting that the government might not proceed with those transparency measures, which would be deeply concerning for those of us on this side of the House and I think ought to be of concern to every Australian who wants an evidence based discussion over multinational profit shifting.

The government talks a good talk about multinational profit shifting, but all its measures have decreased the revenue available to government. They have handed $1.1 billion back to big global firms and they pushed out the starting date for Australia's implementation of the common reporting standard for financial account information. Given that tax commissioner Chris Jordan has estimated that bilateral information exchanges have added $480 million to tax collections in the past year alone, putting off the measure means letting millions more tax dollars go offshore. As the government puts new proposals on the table, they should be judged not by the talk but by the additional revenue. If the government has no new revenue to bank from their announcements that they make then that means no new revenue and zero new action.

This is a fundamental issue of fairness. It is an issue that concerns not just unions and Labor members but small businesses, mums and dads who know that, when multinationals do not pay their share, local corner store hairdressers and suburban plumbers have to pay more, who recognise that Glen the carpenter cannot pursue the same strategies that Glencore the miner can pursue and who recognise that we need a fair tax system that acts in the interests of all Australians.