Secrets and Lies: how franking credits stole the tax bonanza

Thanks to franking credits, the $52 billion in tax paid by Australia’s largest corporations is not actually received by the Tax Office.Upon releasing its report, the ATO’s Deputy Commissioner Rebecca Saint did note the “significant increase of $6.6 billion in tax payable” by large corporations to $52.3 billion. There was SILENCE all round.

Perhaps it was because a slew of the world’s largest corporations were still paying zero income tax in Australia. There was nothing from US oil giant Exxon, despite its $9 billion in revenue, nothing from Chevron either, or Rupert Murdoch’s News Australia Holdings again this year; nothing from a bunch of coal giants, still relentlessly chewing through tax losses from Australia’s overly generous tax regime.
Credit is also due the Government. Although, under former PM Tony Abbott, it originally claimed there was no need for a Senate inquiry; multinational tax avoidance was not a problem, it soon changed tack and reformed. But there is a long way to go to achieve tax fairness.