Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

In accordance with the provisions of the Auditor-General Act 1997, I present the following report of the Auditor-General: Audit report No. 34 of 2008-09: The Australian Taxation Office’s management of serious non-compliance.

Guy Barnett (Tasmania, Liberal Party) Share this | Link to this | Hansard source

by leave—I move:

That the Senate take note of the report.

This is a very important report by the Audit Office and it refers to the fact that in 2007-08 the Taxation Office collected tax and excise revenues of $278.6 billion and made related payments of $9.6 billion. It notes that the tax office aims to achieve a high level of voluntary compliance with Australia’s tax laws. It also refers to the importance of responding to fraud and serious evasion and it notes that noncompliance in the form of fraud and serious evasion against the Commonwealth has the potential if left unchecked to undermine community confidence in Australia’s taxation system and reduce voluntary compliance levels.

This confidence in the tax system and the government’s overall management of our economy concerns me greatly. In an answer to a question on notice from me and others, the federal Commissioner of Taxation has released some information which is now on the public record. It confirms that the Rudd Labor government’s cash splash is both indiscriminate and reckless. The federal Commissioner of Taxation confirmed that the tax bonus payments had been paid to 15,934 dead people and 27,252 Australians living overseas, totalling an estimated $40 million. With regard to the former, the tax commissioner noted that 47,111 deceased estates had lodged a tax return in the 2007-08 year. The answer was as at that time, so we do not know exactly how many deceased estates will benefit from the tax bonus payments which have been and will be paid by the government under their plans. We know the figures for a couple of weeks ago, and the numbers are obviously rising.

What we do know is that there are over 27,000 Australians living overseas who will receive this funding. The government’s objective for this package and the tax bonus payments was to strengthen the Australian economy, not overseas economies. Which overseas destinations benefited most? The United Kingdom benefited, with 20 percent of the payments, as well as New Zealand with 19 per cent, Ireland with seven percent, Canada with six percent, Germany with five percent, France, Korea, the United States and Japan with four percent each, Brazil with three percent and other countries with three per cent. This is all noted in that response to the question put to the federal Commissioner of Taxation. Those countries will receive an estimated $24.5 million. As I say, those figures are correct as of a couple of weeks ago and they will no doubt go up. That means that an estimated $38.8 million, nearly $40 million, of payments designed to stimulate the Australian economy have been paid to deceased estates and those living overseas.

What else have we learnt from this answer to the question on notice and to other investigations during budget estimates? The Department of Immigration and Citizenship disclosed and confirmed that up to 540,921 non-Australian residents as at 30 June 2008 may be eligible for the Rudd government’s $900 tax bonus payment. The department confirmed that 540,921 non-Australian residents have temporary visas with work rights, including 134,238 temporary skilled workers on 457 visas, 317,897 international students, 86,558 working holiday-makers and 2,228 work and holiday visa holders, but sadly the government appears unable to identify how many of these nonresidents have received or will receive the tax bonus. This question must be answered by the government. As far as I and those on this side of the chamber are concerned, the government must disclose exactly how many of those non-Australian residents have received or will receive the tax bonus. This confirms again that the government’s handling of the economy is reckless, indiscriminate and certainly wasteful. It highlights the mismanagement and maladministration of our economy. If only one in 10 of those eligible meet the criterion and receive the tax bonus, that could mean up to another $48 million in payments to nonresidents, which could then go overseas. These are the concerns we have. The community is clearly paying the price now for Labor’s reckless and indiscriminate spending.

We have also had confirmed by the federal Commissioner of Taxation that criminals in prison have received and will be receiving the tax bonus. That is on the public record. What perhaps is not clear to the community but has also been made clear in the last few days is that some millionaires have received multiple payments of this $900 tax bonus under the tax bonus scheme. We would like to know how many millionaires have received the tax bonus payments and, in each case, how many tax bonus payments they received. Was it two, three, four, five? We have been advised that there were multiple tax bonus payments to one millionaire in particular. We would like to know exactly how many payments have been made to these millionaires and, indeed, how this is possible. We would like the government to come clean and make it clear.

These are the questions that need to be answered. We have put them on the record, and the government has to come clean. We know that we are all now paying the price for the government’s reckless spending, and we say enough is enough. They have to come clean and answer these questions so that we are all in the know. Enough is enough.

Question agreed to.