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For profit aged care providers have serious questions to answer about their tax practices



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SENATOR JENNY MCALLISTER

SHADOW ASSISTANT MINISTER FOR FAMILIES AND

COMMUNITIES

SENATOR FOR NEW SOUTH WALES

FOR PROFIT AGED CARE PROVIDERS HAVE SERIOUS QUESTIONS TO

ANSWER ABOUT THEIR TAX PRACTICES

Tax officials informed a hearing of the Senate Economics References Committee

inquiry into the Tax Practices of For Profit Aged Care Providers that they had

concerns about arrangements used by some in the sector.

Such arrangements - including the use of profit shifting via related party

transactions, and stapled structures - had been highlighted by a report by the Tax

Justice Network in collaboration with the Australian Nurses and Midwives

Association.

Senators heard that one of the sectors largest operators - Opal - paid their owners

more than $15m in dividends in a year that their operating company paid no tax.

Another large operator - Allity - were paying close to 15% interest on a loan to a

related party, an arrangement tax officials said could rarely if ever be described as

arm’s length.

Acting Chair, Senator Jenny McAllister said:

“For profit aged care providers depend on government subsidies. Australians

rightly expect that this money will be used to provide care for vulnerable and older

members of our community, not hidden using tricky accounting practices.”

“As the financial sector has learned, the community has very little patience for

companies that push the boundaries in putting profits before people.”

A number of the big, for profit aged care providers did not appear at the hearing.

Acting Chair, Senator Jenny McAllister said:

“It is disappointing that Bupa and Regis aren’t appearing - it raises questions

about what they have to hide. Labor senators are keen to hear from two of

Australia’s largest for profit aged care providers. We’ll be looking at what

procedural options we have to make sure that happens. “

WEDNESDAY, 5 SEPTEMBER 2018

MEDIA CONTACT: REUBEN RAY 0402 821 188

Authorised by Noah Carroll, ALP, Canberra.