Tax transparency: Crack down on big companies before cutting welfare, say crossbenchers   

Date
    December 18, 2015
    Canberra Times

The government should not cut benefits to low-income earners if it won't crack down on tax avoidance by large corporations, which costs the budget billions in revenue, crossbenchers say.

Tax transparency data released on Thursday showed 600 of the 1500 largest companies operating in Australia in 2013-14 did not pay a cent in tax.   


Independent Senator Nick Xenophon says the government has a revenue problem.

Crossbenchers have joined Labor and the Greens in challenging Treasurer Scott Morrison's assertion the government has a spending problem, not a revenue problem.   

Independent senator Nick Xenophon said on Friday any discussion about cutting welfare now had to be "seen in the context of which companies are paying tax and whether they're paying their fair share of tax".

"This has to form part of the equation now," Senator Xenophon said. 


Senator John Madigan has called for corporate tax reform.

"I would suggest that with the release of this information the government has a revenue problem to look at."

Independent Victorian senator John Madigan said the fact so many big companies were paying no tax suggested there was a problem with compliance or Australia's tax law had too many loopholes.

He said the need for reform was obvious. "One issue it does highlight is the unhealthy focus of this government on increasing revenue by slugging those who can least afford it," Senator Madigan said.   

He said the biggest savings measure in Mr Morrison's mid-year budget update was a crackdown on welfare compliance.

"Yet there was no mention of cracking down on the top end of town," he said.   

"If Scott Morrison can squeeze nearly a billion dollars out of the most vulnerable people in our society, imagine what he could do if he went after his mates in the banking and finance sector."

Australian Motoring Enthusiast Party senator Ricky Muir said that in some cases there were legitimate reasons a company had paid little to no tax.

But he said tax loopholes that made it "easy for big companies to avoid paying their fair share of tax" needed to be closed.

"It's no wonder struggling families look at the overall picture and question the fairness of it all," he said.

"Welfare recipients shouldn't be unfairly treated by a government aiming to balance a budget. Other areas of government expenditure should also be looked at. The income side is equally as important - hence, the current focus on taxation revenue."

Thank heavens for the good people in the senate.   

Maqqa wrote on Dec 19^th, 2015 at 7:32am:

Wow, smell the desperation!

Bringing up discredited old crap to avoid answering a real question.

Exemptions on super will cost the Budget $170Bn over the forward estimates. I reckon these exemption need to be reduced and eventually gotten rid of entirely.

Jovial Monk wrote on Dec 19^th, 2015 at 7:38am:


and therefore end the entire purpose of superannuation entirely. Why would ANYONE spend their hard-earned money and put it into super for no benefit and then be unable to access it for decades?  Short answer: no one.

Why do we pay into super, Longy?

To prepare for retirement, right?

Well, ATM it is to dodge tax. Stuff that.

John Smith wrote on Dec 19^th, 2015 at 7:42am:


forgive longloser. he likes to think that one day he will own one of these big tax avoiding companies

I am very much in favour of any crackdown on companies not paying tax..I do not think its right that a foreign company can do business here and yet escape paying ANY TAX..

thats pathetic and needs to stop....100%....

its the same with good bought on ebay.. let them pay GST...I dont care how small it is...make em pay..

600 companies its mind blowing.. 

if they found 600 welfare recipients fiddling their pensions they would b eon them like a tonn of bricks...

what the heck is this all about?????>..

and lefties dont kid yourself it was any different when your mob was in...