It is not fair that Australians work hard and pay tax while big multinationals get to play by different rules. The Australian Tax Office has revealed one in four big multinationals pay no tax at all in Australia – not one cent.
It is not fair that Australian businesses are paying more tax in Australia than big multinationals. Every tax dollar that gets sent offshore is a dollar that can’t be spent on things that matter here at home: like schools, hospitals and roads.
Labor will shut down loopholes which allow big multinational companies to send profits overseas, ensuring they pay their fair share of tax just like everyone else has to.
Our package includes:
- Changes to the arrangements for how multinational companies claim tax deductions
- Greater compliance work by the ATO to track down and tackle corporate tax avoidance
- Cracking down on multinational companies using hybrid structures to reduce tax
- Improved transparency and data matching.
Labor’s plan has been fully costed by the Parliamentary Budget Office, and will bring at least $7.2 billion back to Australia in tax from big multinationals over the next decade.
Our tax system shouldn’t get softer the higher it goes. How much tax you pay shouldn’t be decided by how good a lawyer you have.
Labor’s approach has been developed in consultation with multinational tax practitioners, academics, industry and costed by the independent Parliamentary Budget Office.
This approach also draws on the OECD’s global action plans for countering base erosion and profit shifting.
Tightening Australia’s tax net will not be easy – it is a complex and difficult task. But we need to act decisively to make sure big multinationals start paying their fair share of tax now.