Simon Birmingham (SA, Liberal Party, Parliamentary Secretary to the Minister for the Environment) Share this | Hansard source

I thank Senator McLucas for her contribution to this debate, and the opposition for their support of this legislation. In regard to some of the comments Senator McLucas made, I want to reiterate that it is this government's intention to ensure that we do tackle tax avoidance wherever possible, in particular global tax avoidance. It is our intention in this space, as with any other, that the policy measures applied must be effective, coordinated and efficient. They must effectively work to tackle tax avoidance. In this global space they must be coordinated with other nations, and they must be efficient in that they do not add unreasonable or unnecessary red tape that does not contribute effectively to solving the problem.

Our concern with some of the measures of the previous government is that that they did not pass this test. But we are working hard, in particular through the G20 process, to try to get the type of coordinated action that can ensure everyone has confidence that a fair share of tax is paid, an appropriate share of tax is paid, by all companies.

In relation to this legislation, I note that the agreement with Switzerland was signed in 1980 and is one of Australia's oldest unamended tax treaties. This bill will give effect to the amendments that have been negotiated in the revised tax treaty between Australia and Switzerland. It will also clarify the meaning of 'immovable property' for the purposes of the revised Swiss treaty, and for other Australian tax treaties that use that term. So it takes important steps in modernising our arrangements, not just with Switzerland but with other countries affected by that provision. I commend the bill to the chamber.

Question agreed to.

Bill read a second time.