Publish What You Pay (PWYP) and Transparency International Australia have made recommendations to the Treasury relating to proposed changes under the Treasury Laws Amendment (Measures for Future Bills) Bill 2023: Multinational tax transparency – Tax changes.
These amendments would enhance transparency and accountability in extractive industries, currently one of the world’s most corrupt sectors.
Proposed changes would go some way to aligning Australian multinational companies with global reporting obligations; this is particularly important given the significance of extractive industries companies to Australia, with over 700 ASX listed Australian companies, and many unlisted, operating in over 100 countries globally.
However, more could be done to create a level playing field, increase access to information for stakeholders, inform communities of the economic contribution of the sector and reduce the risk of corruption and tax non-compliance.
PWYP and TIA recommend that legislation is further strengthened by requiring project-by-project reporting for extractive industry companies, and through ensuring that where reporting exemptions exist, disclosure is made as to the rationale for the exemption.