A Shorten Labor Government will tackle multinational tax dodgers to help pay for our priorities – better schools, better hospitals and protecting Medicare.
Labor will implement a number of measures targeting multinational tax avoidance and high wealth tax dodgers, saving the budget $4.8 billion over the next decade, including stopping companies claiming illegitimate deductions for travel to and from known tax havens.
Working Australians pay their taxes – it’s only fair that multinationals pay their fair share too.
Labor will also close a loophole that allows companies to deduct bad debt from related party financing arrangements.
These measures build on Labor’s existing plans to make the tax system fairer for all Australians.
Labor will make firms undertaking business in tax havens disclose that to shareholders and make significant tenderers disclose their country of tax domicile.
We will introduce public country-by-country reporting, work with superannuation funds to make sure they develop guidelines for tax haven investments and stop citizenship shopping by requiring Australians with foreign residency to report to the Tax Office.
Tax havens are used by drug-runners, extortionists and counterfeiters. Around four-fifths of the money shifted to tax havens is estimated to be in breach of other countries’ tax laws. Half the money in tax havens is estimated to be owned by the top 0.01 percent. One estimate suggests that Australians have around $100 billion parked in tax havens.
Australians know that when multinational tax dodgers and the super-rich don’t pay their fair share, we can’t fund our education and health systems properly.
While the Coalition is paralysed by infighting and indecision, Labor has made serious decisions to balance the budget, pay down debt and fund its positive policies for schools and hospitals.
Labor knows what needs to be done and will continue to lead the debate on multinational tax avoidance.