Uber and Airbnb send profits to countries with lower corporate tax rates such as Ireland and the Netherlands, according to submissions to the Senate inquiry into tax avoidance.
The tech giants both told the Senate inquiry their Australian operations are merely support services for the local market, with the bulk of their operations conducted overseas.
Labor Senator Sam Dastyari told Fairfax it is crucial for Australia to make sure companies earning money from services in Australia are paying their fair share of tax.
“It is alarming when a company is evidently sending untaxed revenue to the Netherlands or Ireland earned from services delivered in Australia,” Dastyari said.
“The corporate structure of a company held by a parent in a low tax jurisdiction such as the Netherlands or Ireland is a cause for concern. Australia cannot be a spectator as profits are simply shifted overseas through clever accounting methods.”
Small business bans Campbell Newman’s biography
An independent bookshop in Brisbane has banned former Queensland premier Campbell Newman’s biography in response to the cuts he made to the arts during his time in the top job.
The decision comes after a number of high-profile publishing houses, including University of Queensland Press, declined to publish the memoir.
“We saw that as an attack on the writing, editing, book-publishing, book-selling community in Queensland,” Stager said.
“It seemed ironic that he first thing he did after losing was turn around and be involved in the publication of a book. A lot of my customers lost their jobs… it had a big impact on my first Christmas. Booksellers have a long memory.”
Shares down on open
Aussie shares dipped into the red just before midday but are expected to perform well today in comparison to international markets.
Michael McCarthy, chief market strategist at CMC Markets, said he expects Australian shares to perform strongly.
“Strong rallies in commodity indices, led by energy markets, should see local investors shrug off tepid US stock market leads to power shares higher today,” McCarthy said.
“Positive momentum in the Aussie dollar could bring international support, particularly relevant in light of a Bank of Japan monetary target statement today.”
The S&P/ASX 200 benchmark was down 23 points, falling 0.45% to 5144.4 points at 11:09am AEST. On Tuesday, the Dow Jones closed 13.76 points higher, up 0.08% to 16,790.19 points.