The Senate has just voted through a new Diverted Profits Tax, designed to whack foreign companies that book their profits offshore to avoid paying tax in Australia.
The Treasurer Scott Morrison said the government is “determined to ensure multinationals do the right thing and pay their fair share of tax here in Australia so that Australian citizens get the money that is owed to them to fund vital infrastructure and services.”
This is good news, but it does raise the question of why the Government is even considering selling off a massive piece of Newcastle Port to a Chinese company that hasn’t paid any taxes in years.
Yancoal, which is owned by the Chinese government, is currently bidding to buy a major stake in Newcastle Port, as well as a number of mines in the Hunter Valley. The company has racked up $1.7 billion in losses over the last four years, which means it hasn’t had to pay any tax on its earnings over the same time period.
The assets included in the Newcastle port deal are currently worth $100 million a year in tax revenues, but the scale of Yancoal’s losses mean would this would be offset too. In other words, $100 million A YEAR will disappear from the Treasury if this deal goes through.
That’s enough to pay for 1500 more teachers or police, 1700 nurses or 2200 hospital beds. If the government is serious about making sure companies pay their fair share this deal has to be blocked!
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