Craig Laundy (Reid, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer inform the House how the government's budget reforms are strengthening our tax systems to ensure that they are fair and sustainable? How is the government ensuring that individuals and large multinational companies are paying their fair share of tax?

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

Gee whiz, that is a fine question.

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

It is about time! Well done.

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

It is about time. It is a question that I would have thought would have been asked since budget night by the Labor Party, but no. In this case, the member for Reid has taken a keen interest in ensuring that multinational organisations pay their fair share of tax. And the fact is: when we came to office, we actually embedded people from the Taxation Office in a number of major international companies operating in Australia. As a result of being embedded in their businesses, we have been able to identify 30 multinationals that have been shifting profits offshore. They have substantial operations here on the ground in Australia but have been shifting profits offshore to Singapore, then to Ireland, then across to the Netherlands, then back to Ireland and then across to Bermuda. We have been able to identify that because we have actually been in their businesses. It is known colloquially as a double Irish Dutch sandwich—

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

That sounds like a mouthful.

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

It is a mouthful, Prime Minister. The accountants love that sort of talk. On budget night, we released legislation that not only strengthens our anti-avoidance provisions but ensures that we can recover the tax that should be paid in Australia and apply a fine of up to 100 per cent plus interest on the tax that should have been paid in Australia. We have done this in a measured and considered fashion. In contrast, we just heard in Senate estimates the deputy secretary of the Treasury provide an observation about Labor's approach to multinational taxes. What we do know is this: Labor say one thing but, actually, what they do is completely different. They are running around saying that they have an option that will crack down on multinationals and raise $7 billion in revenue over the next 10 years. All their savings seem to be over 10 years and all their spending over four. That is another argument. But they said it would save $7 billion over 10 years. We have found out from the Parliamentary Budget Office that the reliability of that figure is low. That means it is highly unlikely they are going to get $7 billion. But it gets better. Their proposal not only does not raise the money that they said it would; their proposal is going to cost jobs. It is going to cost jobs as well. The deputy secretary of the Treasury was asked: 'Did you go through Labor's proposal? Did you go through their proposal? What would be the impact on jobs?' He said, 'Yes, it would cost jobs. Yes, yes, it would cost jobs.' So not only has Labor come up with a tax that will raise no money but it will cost Australian jobs. Well done, Labor!