Helen Polley (Tasmania, Australian Labor Party) Share this | Hansard source

I rise tonight to make a contribution on the Taxation (Multinational—Global and Domestic Minimum Tax) Bill 2024 and the associated bills. This is one part of a three-part package of bills which seeks to reform our taxation system and which, if passed, will apply to fiscal years on or after 1 January 2024. These bills enable a 15 per cent global minimum tax and domestic minimum tax for multinational corporations operating here in Australia with an average global revenue of A$1.2 billion.

The Albanese Labor government is deeply committed to ensuring that everyday Australians are taxed fairly. In the last month—a little longer than that, in fact—we've ensured that a really fair tax cut has gone to all Australian workers, to every Australian taxpayer, ensuring that more of what they earn stays in their pockets. The Albanese Labor government is 100 per cent dedicated to fairness and equality in every aspect that a federal government is involved in. That is why we also want to ensure that the big end of town—big business, multinational companies—pays its fair share of tax.

We luckily have a very robust corporate taxation system here in Australia where multinational corporations must pay their fair share of tax. Since coming to office just two years ago, the Albanese Labor government has already delivered four significant and integral multinational tax reform measures. We have introduced a new disclosure law which requires listed and unlisted public companies to disclose information on the number of their subsidiaries in their country of tax residency—really important. This creates more transparency in how companies are structuring their subsidiaries and helps prevent corruption and abuse of the legislation.

The second fundamental reform the Albanese Labor government has made in the area of multinational taxation legislation is in the implementation of a public register of beneficial ownership, which makes information relating to who specifically benefits from profits made by multinational corporations and who holds ownership more transparent. The third fundamental part of our multinational tax reform is about strengthening the way our foreign investment system reduces the risk of multinational investors trying to dodge tax. We have delivered a stronger, more efficient, more productive and more streamlined approach to foreign investment.

The Albanese government has delivered a funding boost for the Australian Taxation Office's Tax Avoidance Taskforce in the October 2022-23 budget by around $200 million a year. Our Labor government has bolstered crackdowns on multinationals dodging tax or avoiding paying their fair share of tax in this country. Furthermore, our government has introduced five further reforms for our multinational tax reforms. They include beginning a country-by-country reporting structure that was introduced to parliament and that, once introduced, has been implementing reporting structures since July this year.

These measures are all really important to ensure that multinationals are paying their fair share of tax here in Australia. The register which will be implemented is part of the government's commitment to integrity. We went to the last election committing to having more openness, transparency and integrity in everything that we do, and this is another area that we have delivered in. We will not waver from our commitment to those principles.

Fundamentally, this bill is about the Albanese Labor government ensuring that our taxation system is fair and transparent and has integrity. The entire purpose of our taxation system is to ensure that our country's government services are provided fairly and equitably, and the objective of this bill, to provide that, is no exception. This bill has provided our election agenda and is actually delivering on more objectives in relation to strengthening the way our foreign investment system reduces the risk of multinational investors avoiding taxation. I'd also like to pay my gratitude and thanks to the Assistant Minister for Competition, Charities and Treasury, the Hon. Dr Andrew Leigh MP, for his contribution to this very important piece of legislation.

Tonight, I would like to urge those sitting on the crossbench to support this crucial piece of legislation to ensure that multinational corporations both globally and domestically are taxed fairly, because every Australian taxpayer needs to be treated fairly. There need to be equitable outcomes for the pay-as-you-go taxpayer and multinationals, because that's the principle that Australians really stand for. If we don't ensure that multinationals and individuals pay their fair share of tax, then no government, whether it's a Labor government or whether it's those from the other side, will be able to deliver these services that we need.

This side of the chamber knows, as a Labor government, that, in terms of affordable housing, providing incentives to get people back into the workforce is always going to come from this side of the chamber. If people want a government that is going to be strong and support people in the care economy, like in aged care and in early childhood education, then they know that they have to support a Labor government. To be able to do all these things, we have to ensure that people pay their fair share of tax. So I am proud of the Albanese Labor government and what we have been able to achieve in a very short period of time to turn around and start cleaning up the mess left by those who were in government for 10 years. They didn't address these multinational issues or make sure there is fairness in our taxation system.

Debate interrupted.