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Australians will roo Qantas takeover: $1 billion tax rort.



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www.stevefielding.com.au

MEDIA RELEASE SF/112. Thursday January 18, 2007

AUSTRALIANS WILL ROO QANTAS TAKEOVER: $1 BILLION TAX RORT

The planned takeover of Qantas by a private equity group means Australians would lose more than $1 billion in tax revenue.

The huge debt structure created by the takeover means that Qantas would be likely to avoid paying annual income tax. Australia would lose almost $200 million in tax each year.

FAMILY FIRST says this is yet another tax rort that will cost Australian taxpayers.

Last month FAMILY FIRST revealed the tax rort where the Qantas takeover partners stand to gain at least $450 million in capital gains tax exemptions that ordinary Aussies are not entitled to.

FAMILY FIRST believes the takeover is not in the national interest. Qantas would take on a huge debt for no real benefit to Australians.

FAMILY FIRST is alarmed at what would happen to Australian jobs to help pay for such a debt driven takeover. Qantas CEO Geoff Dixon has refused to guarantee Australian jobs would be safe.

The private equity group buying Qantas would need to borrow around $10 billion from foreign investors at an annual interest bill of $700 million.

Paying interest of $700 million means that Qantas would have no taxable income. Qantas would also not pay tax on interest paid to foreigners if the interest is paid to foreign superannuation funds.

Qantas paid $190 million income tax in the financial year ending 30 June 2006.

For media enquiries phone acting media adviser Jeremy Stuparich on 0411 233 937