Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Cormann. This week I was made aware by Micah Challenge of the fact that developing countries lose $160 billion of revenue through multinational tax evasion every year. No doubt other senators in this chamber also received that information. Your government has led Australians to believe that they are taking action on multinational tax evasion through the G20. Will the Australian government sign an information-sharing agreement for global action on multinational tax evasion, which countries including Germany and Britain have already signed?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator Whish-Wilson for that question. As he rightly points out, this government is committed to ensuring that multinational businesses who operate in Australia, and indeed who operate in other parts of the world, pay appropriate levels of tax in relation to the profits that are generated either here or in other parts of the world. As Senator Whish-Wilson also indicated, it is appropriate for these sorts of issues to be resolved at an international level, because if we were to take unilateral action then of course we would put at risk our capacity to grow our economy more strongly. Unilateral action would potentially impact our international competitiveness, which is why the Treasurer, Mr Hockey, is pursuing the issues that Senator Whish-Wilson has raised very proactively and energetically through the G20 fora. As you would be aware, Australia right now has the privilege of chairing the G20. We had a meeting of finance ministers and central bank governors in Sydney earlier this year, and that will be followed up with a leaders' forum in the great state of Queensland later this year. I am confident that we will be making—

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Mr President, I rise on a point of order on relevance. Perhaps Senator Cormann was going to get around to it, but I asked if they were going to sign an information-sharing agreement which has already been signed by countries such as Germany and Britain.

John Hogg (President) Share this | Link to this | Hansard source

There is no point of order at this stage.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I was directly relevant to the question that was asked. This government will continue to progress its commitment to ensure that multinational companies pay their fair share of tax in relation to profits generated here in Australia in an orderly and methodical fashion, including through the appropriate international fora, such as the G20. That is ultimately the only way that we can conclusively make progress in relation to these sorts of issues.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. It has been reported that despite Glencore and Xstrata having coal revenue of almost $15 billion over the past three years—that is revenue from their Australian coal operations—it pays almost no Australian company tax. Does the minister agree with this assessment? And does the minister find this an acceptable situation?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Consistent with well-established practice, it would be completely inappropriate for me to talk about the specific tax affairs of individual taxpayers. But I would again make the general point that we would expect that all businesses, including multinational businesses operating in Australia, pay their fair share of tax in relation to profits that are generated in Australia. That is something that we continue to pursue in order to ensure that that appropriately takes place. The most appropriate way to pursue these important issues is through international fora like the G20, which is what the Treasurer, Mr Hockey, is doing very energetically as we speak.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Is the minister able to give the Senate today a current estimate from the government of multinational tax already avoided in Australia? Is the government prepared to name and shame corporate tax avoiders?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

The government will continue to act in the national interest on all matters, including in relation to the broader issues he raises. I do not believe that the suggestions that Senator Whish-Wilson has made here today are particularly constructive or would be particularly effective.