Andrew Murray (WA, Australian Democrats) Share this | Hansard source

In closing the debate on my motion to oppose schedule 4, I will make some short remarks. I value, as a member of the Senate, the opportunity to debate at some length a bill which forecasts or anticipates a revenue loss to Australia of a third of a billion dollars over four years. It is proper that we take some time to do that.

Apart from the entertainment value of the robust exchange, through the chair, between Senator Sherry and Senator Joyce, there are serious issues that needed to be ventilated. To summarise them briefly, the allegation from me, Senator Joyce and Senator Fielding is that foreigners are going to be advantaged with respect to capital gains tax in comparison to Australians. The government and Labor disagree, and we have had the opportunity to put that point of view forward.

The second issue, of course, is that there is a revenue consequence to this. I agree that private equity was a tangential issue which was raised during the debate. But there are two aspects which give it merit. The first is that it is an example of those who invest in Australia, and they will get a tax benefit arising from this bill. So in that respect it was relevant. But the other point is that this is about the only opportunity we have had so far to raise the issue of private equity funds. I think the minister is alert to the matters summarised by the shadow minister—that is, that there are issues surrounding this area of transparency, of proper disclosure of the way in which gearing occurs and so on and so forth.

The area I am most concerned with, I say to the minister through the chair, and that I think government should examine, is the area of identifying beneficial ownership to ensure that, with respect to very large acquisitions, particularly those in sensitive markets—and you understand the relevance of that—we know who lies behind these funds. I have no concern at all with superannuation funds or any body of that nature. But I want to be assured that there is no-one lying behind major acquisitions of major Australian assets who we as a community might want to know about. I am not at all against foreign investment in Australia, and neither is my party, but I sure as hell want to know who those foreigners are if it is a big acquisition. I will wrap it up on that basis. I thank the participants in the debate on my motion to oppose the schedule.

Question put:

That schedule 4 stand as printed.