Big business, and Malcolm Turnbull, get warnings

SBS World News Radio: 'Big business' and the federal government face warnings of reputational troubles in the aftermath of corporate tax cuts passing the parliament.

The federal Treasurer Scott Morrison.

The federal Treasurer Scott Morrison. Source: AAP

Treasurer Scott Morrison says the so-called big end of town - big business - has a reputation problem.

The Treasurer accuses Labor of exploiting public disdain for big business to campaign against the federal government's enterprise tax plan.

He says, while the Coalition has made its case for corporate tax cuts, companies themselves need to prove they will spend the extra money wisely.

"This task cannot be pursued by the government in isolation. Business, particularly large business, has a critical role to play in demonstrating to the Australian people that, as their business grows, their employees will benefit."

But the Treasurer's frontbench colleague, Immigration Minister Peter Dutton, says the government has reputation issues of its own.

Prime Minister Malcolm Turnbull took over the Liberal leadership from Tony Abbott in 2015.

His reasoning was the Abbott government had lost 30 Newspoll opinion polls in a row.

But under Mr Turnbull's leadership, the Coalition has now trailed Labor in 10 consecutive Newspolls.

Peter Dutton has told Radio 2GB that losing streak needs to end.

"What we need to do is to turn polls around, if that's the measure. We have to make tough decisions, as the Howard Government did, as the Abbott Government did. They're not always popular. It's hard when you've got a Budget that's going close to half-a-trillion dollars' worth of debt that Labor racked up."

The government is depending on an Australian Taxation Office task force of 1,000 people to help recover lost revenue.

The tax office has billed seven large multinational companies for almost $3 billion in unpaid tax.

Financial Services Minister Kelly O'Dwyer says those companies have made a lot of money in Australia.

"We're talking about very well known companies, companies that are household names, companies that operate not only in Australia but right around the world, and companies that make very significant profits here in Australia and who otherwise might have been looking to shift those profits offshore."

The pursuit of those seven firms may just be the start of something much bigger, with the Minister reporting the tax office is auditing another 59 multinationals.

Ms O'Dwyer says the crackdown on tax avoidance is only possible because the Turnbull Government gave the tax office new enforcement powers.

But Labor has accused the government of hypocrisy.

While the Senate only passed tax cuts for small and medium businesses, the government's original plan would have reduced the tax rate for all companies.

That included the large multinationals now under scrutiny.

Opposition finance spokesman Jim Chalmers suggests it is a contradiction.

"Never forget that these companies which are being pursued by the tax office are exactly the same companies that the Government wants to give a $50 billion tax cut to."

 

 


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3 min read
Published 6 April 2017 6:00pm
Updated 6 April 2017 6:13pm
By James Elton-Pym


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