Labor believes it is unacceptable that while multinationals get away with paying mimimal tax and the top 10% of income earners pocket huge tax concessions, ordinary Australians are left to pick up the bill.
We will ensure that multinationals pay their fair share and reform negative gearing and capital gains tax concessions to make our tax system equitable again.
In 2012-13 companies shifted over $300 billion from their Australian arms to overseas parent or subsidiary companies.
We want to close the loopholes that allow big multinationals to send their profits overseas. Labor will achieve this by:
Standarding our tax laws with other countries to ensure that companies cannot 'double dip' - that is, claiming tax exemptions in one country and tax deductions in another
Increasing penalties for non-compliance with country-by-country reporting
Restoring the $100 million threshold for reporting the tax affairs of large private firms
Establishing an obligation to disclose the beneficial ownership for Australian legal identities to ensure that Australia is not used as a destination for money laundering, tax evasion, terrorism financing or other criminal activity
Improving complaince with the Australian Taxation Office by providing the ATO with proper funding
Starting 3rd party reporting and data matching early to improve compliance.
Under Labor’s budget reforms, the capital gains subsidy will be halved and negative gearing will be targeted to new homes.
Our reforms will strengthen the budget by $565 million over the forward estimates, and $32.1 billion over the decade. This will help fund education and healthcare and repair the budget.
Limit negative gearing to new housing from 1 July 2017. All investments made before this date will not be affected by this change and will be fully grandfathered.
Taxpayers will continue to be able to deduct net rental losses against their wage income, providing the losses come from newly constructed housing.
From 1 July 2017 losses from new investments in shares and existing properties can still be used to offset investment income tax liabilities. These losses can also continue to be carried forward to offset the final capital gain on the investment.
Halve the Capital Gains Tax discount for all assets purchased after 1 July 2017 from 50% to 25%
This will reduce the capital gains tax discount for assets that are held longer than 12 months from the current 50 per cent to 25 per cent.
All investments made before this date will not be affected by this change and will be fully grandfathered.
This policy change will also not affect investments made by superannuation funds. The CGT discount will not change for small business assets. This will ensure that no small businesses are worse off under these changes.
These reforms will not only strengthen the budget, but will boost housing supply and create jobs, and level the playing field for homebuyers.
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