Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Hansard source

From what I understand you have just said, the 20 per cent threshold was chosen because it was in the UK bill, which is often called the Google tax. I think that was the first of its kind in the world. The threshold that the Greens propose to introduce is a lower threshold so that, if 10 per cent or more of tax has been diverted or the ATO suspects it has been diverted, it can choose to begin an investigation or seek redress. I note that, whether it is 20 per cent or 10 per cent, or even 50 per cent, the commissioner has discretion. No doubt they will use that discretion based on risk return and what they expect to gain from the investigation versus the costs of that investigation and the opportunity cost more broadly. I understand that, even at 20 per cent diverted profit, the commissioner is not guaranteed that they will seek investigation.

We have been speaking to our own stakeholders and we believe a 10 per cent threshold is more appropriate considering that there is still discretion as to whether the commissioner will pursue an investigation. Could you clarify for me, Minister, whether it is the case under the current 20 per cent provision that the ATO commissioner has discretion as to whether they will pursue an investigation or whether they actually have to if they believe 20 per cent or more of tax has been diverted.