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