Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Minister for Revenue and Financial Services. Given that the minister was not present in the House last night when detailed questions on the International Tax Agreements Amendment Bill could be asked, and given that the bill that was eventually passed last night affects the taxation of dividend payments, I ask: what will be the change to the tax treatment of effective dividends?

Kelly O'Dwyer (Higgins, Liberal Party, Minister for Revenue and Financial Services) Share this | Link to this | Hansard source

I very much thank the member for his question. As he is very well aware, the new tax treaty with Germany, which he supports, incorporates integrity provisions as part of the G20/OECD base erosion and profit shifting project. It assists in our continued efforts to ensure that multinational companies and high-wealth individuals pay the tax that they ought to be paying in this country. The treaty measures are intended to minimise the opportunities for non-taxation or reduced taxation through tax avoidance, including treaty-shopping arrangements. Treaty benefits will be denied if a person's principal purpose is to take advantage of the treaty to avoid paying tax. The new treaty authorises the Australian Taxation Office, our revenue authorities and Germany's revenue authorities to exchange taxpayer information on all taxes imposed by either country. It enables mutual assistance in the collection of outstanding tax debts. It is very important that we were able to implement this change in the law—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The Manager of Opposition Business, on a point of order?

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

On direct relevance, I do not see how it is possible to be directly relevant without answering about the tax treatment of effective dividends, given that was the question.

Mr Pyne interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The Leader of the House will cease interjecting. The Manager of Opposition Business will resume his seat. The Minister for Revenue and Financial Services is entitled, on the substance of the question, to have a preamble, but I do say to the minister that she needs to now start to direct herself to the rest of the question, on the specifics that were asked.

Kelly O'Dwyer (Higgins, Liberal Party, Minister for Revenue and Financial Services) Share this | Link to this | Hansard source

I say to the member opposite that the reason for the importance of this particular tax treaty is that it is the very first tax treaty that Australia has been able to conduct with another country that implements the provisions of the G20 OECD base erosion and profit shifting project, which is absolutely critical and something that those opposite say that they care very deeply about. You want us to be combating multinational tax avoidance, and this particular tax treaty will be able to deliver just that. So I commend the legislation that has passed both the House and the Senate and I say to those opposite that if you want to actually get into cheap point-scoring, that is the level to which Labor has actually sunk. Then what I would say is that you should be—

Tony Smith (Speaker) Share this | Link to this | Hansard source

I again draw the minister to the specifics of the question. She has been entitled to cover the broad range of the legislation, but the question was more specific—this is without being offensive to those asking questions on my left—than many questions are. The minister needs to direct herself to that or wind up her answer.

Kelly O'Dwyer (Higgins, Liberal Party, Minister for Revenue and Financial Services) Share this | Link to this | Hansard source

I am happy to conclude my question.