The peak body for working people has welcomed the ALP’s announcements that they will close loopholes used by multinationals and the extremely wealthy to funnel funds away from schools, cancer treatment, hospitals, roads and universities into offshore accounts.
Currently a tiny percentage of taxpayers – less than one thousandth of one percent – are abusing a loophole to deprive Australians of funding for essential government services. This will affect the budget to the tune of hundreds of millions of dollars over the medium term.
The ACTU has repeatedly called for measures that make corporations pay their fair share of tax so we can live in the kind of country we deserve.
In 2016-17 – the most recent years for which figures have been released – one third of large companies paid no tax at all.
In the same year 69 people were paid more than one million dollars and didn’t pay any income tax – not even the Medicare Levy.
Twenty-seven of those 69 people paid an average of $600,000 to the tax advisers who helped them avoid contributing to our hospitals, schools, roads and universities.
The ALP has promised to cap the deductibility of tax advice, closing another loophole.
As stated by ACTU Secretary Sally McManus:
“Our country works best when everyone pays their fair share and everyone gets a fair go.
“It’s clear that some corporations and very wealthy individuals have been rorting the system, abusing loopholes to rob our schools, hospitals, roads and universities of money by funnelling it offshore.
“It’s right that these loopholes should be closed, and we welcome the ALP’s promise.
“These changes will mean a better, fairer country for everyone.”
