Andrew Hastie (Canning, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer update the House on how the government is ensuring that multinational companies pay tax on what they earn in Australia? How does Australia's approach compare with the approaches of other developing or developed economies?

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

I thank the member for Canning for his question. He knows, because he is part of the Turnbull government that is making multinationals pay their fair share of tax in this country. I hear those opposite scoff, but we know that those opposite, the Labor Party, when they were in government did absolutely diddly squat when it came to the issue of making multinationals pay their fair share of tax. Here is the record: this year alone, as a result of the measures that we brought into this parliament, we will claw back $2 billion in revenue from multinationals. That is the advice from the Australian Taxation Office. That is $2 billion that those opposite, the Labor Party, voted against. They came into this place and said they were going to vote against making multinationals pay their fair share of tax. That is important revenue to support schools and hospitals and to pay down the disastrous deficit that those opposite left us through their fiscal mismanagement when they were in government.

Labor did oppose those laws, but the laws that we were able to pass through the parliament gave the tax office the power, the resources and the penalties to get the job done—some $3.7 billion is estimated to be collected as a result of the measures that we have introduced and passed and which were opposed by the Labor Party. There are some 71 audits currently underway, involving 59 multibillion-dollar multinationals. That is the action that the Turnbull government is taking with the powers, the resources and the penalties that we have given the tax office to get the job done. It is having an effect—Facebook are now booking their Australian revenue in Australia and not in Ireland, as was occurring under the laws that were favoured by the Labor Party. On top of that, Google have also changed their arrangements. Chris Jordan, the Commissioner of Taxation, has said multinationals are now:

… abandoning their contrived structures and restructuring to models whereby the sales are booked in Australia.

On top of the measures that we introduced through the multinational anti-avoidance legislation, we have introduced legislation to make sure that people buying things from overseas at a low value will pay GST, just like if you went into a street anywhere in Australia and walked into a shop you would pay GST in those premises. We are levelling the playing field. There is the tax that is now applied to digital services online, and the diverted profits tax, which was introduced in the budget, will come before this chamber again to ensure that it can be passed. We have taken action on multinational tax; those opposite wanted to let multinationals fleece us.

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

) ( ): My question is to the Treasurer. There are reports today that the government is preparing to back down on its centrepiece $50 billion tax cut for big business—just like the Treasurer backed down on an increase in the GST, on state income taxes and on dealing with the excesses in negative gearing. Can the Treasurer name one major tax reform he has been able to hold onto for more than a year?

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

He must have missed the answer I just gave: multinational anti-avoidance legislation, diverted profits tax legislation, low-value goods legislation to make sure that people are paying taxes on goods that they buy from overseas—

Ms Henderson interjecting—

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

The member for Corangamite is warned!

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

and the biggest changes to superannuation that those opposite did not have the gall to bring into this chamber. They talk big in opposition, but when they were in government they did not go anywhere near it. This side of the House brought those reforms into this parliament, even against—and I am no less aware of it than anyone in this chamber—the opposition of some on our own side of politics. We had the courage to make those changes and we remain absolutely committed to ensuring that companies in this country can remain competitive.

I met with the new Treasury secretary, Steven Mnuchin, on the weekend and he made it very clear to me that their timetable to get the company tax rate down from over 30 per cent to 15 per cent is by the end of the year. Those opposite have a plan to strand Australian businesses in the international economy. They want to see investment go offshore—and the jobs, the wages and the living standards that goes with it. The only party in this chamber, apart from the Greens, that wants to see businesses pay more tax is that of those who sit opposite. They want to see small businesses pay more tax, they want to see medium-sized businesses pay more tax and they want to put a tax on jobs and a tax on incomes. Those opposite, the Labor Party, are addicted to higher taxes, and for one reason: they cannot control their spending. If they were prepared to come into this chamber and support the government when it came to making sure businesses were able to employ people in more situations by having a lower tax burden and if they would support us on the savings that were necessary, they would not be putting our AAA credit rating at risk, which they are.