Every day now the chorus condemning tax avoidance gets louder.
If a small business can pay a 28.5 per cent tax rate as a company or the relevant marginal tax rate as a sole trader, then multinational companies can pay their fair share. Small businesses are sick and tired of competing on uneven terms.
Labor already has a comprehensive plan to close significant tax loopholes. We’ve had one for more than a year. We’ve done the hard work, we’re leading the push to tighten Australia’s tax net and we’re waiting for others to follow.
Labor’s plan will return $7.2 billion in tax to Australia over the next decade by closing debt deduction loopholes, improving data matching and giving the Australian Tax Office the resources it needs to crack down on corporate profit shifting.
Independent costings from the Parliamentary Budget Office have confirmed our plan returns billions to the budget. Implementing it will be Labor’s priority in government.
In fact, the Government could implement Labor’s tax plan right now to ensure big multinationals finally pay their fair share. This would create a more even playing field for all businesses in Australia, removing the unfair competitive advantage for those large enough to exploit loopholes.
The Government should also pass our Private Members Bill that raises by 50 times the penalties for not complying with Australian reporting laws.
Australians are right to question why this Government is silent on tax avoidance, but quick to defend banks against a royal commission.
Tax avoidance undermines confidence and unfairly burdens workers and small businesses who do contribute.
The Government’s mantra has rapidly become “Soft on tax avoidance and the banks; hard on hospitals and schools Australians rely on”.
WEDNESDAY, 20 APRIL 2016