Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

I thank Senator Bushby for a policy question, because Senator Bushby and every senator on this side of the chamber is actually interested in the future of Australia. We are actually interested in building a stronger economic and fiscal foundation for Australia.

The government wants and expects all taxpayers to pay their fair share of tax. If companies make a profit here they should pay tax here and they should pay tax consistent with our laws. In this year's budget we announced significant steps to strengthen the integrity of our tax system and crack down on multinational tax avoidance. This included measures on anti-hybrid rules, harmful tax practices, exchange of rulings and treaty abuse rules. The government has also tightened our thin capitalisation rules to stop multinationals from claiming excessive debt deductions. These measures are our contribution to the G20-OECD Base Erosion and Profit Shifting Action Plan, following our successful leadership in this global effort as G20 president in 2014. May I just say that Treasurer Hockey did an outstanding job in providing global leadership on this very important issue.

Yesterday the Treasurer introduced to the House a new multinational anti-avoidance bill to stop companies from diverting their profits to tax havens to avoid paying tax in Australia. This law will target approximately 30 large multinationals suspected of diverting profits using artificial structures to avoid a taxable presence in Australia. If economic activity takes place here then the profits will be taxed here. Multinationals that break the rules will face tougher penalties. Not only will they have to pay the tax they owe, but they will also face additional penalties of up to 100 per cent of the tax they owe.

We are continuing to provide leadership at an international level through the G20 and through the OECD. In government, Labor was all talk and no action. This government is actually getting on with making a difference.