Treasury aren’t tracking offshore payments!
Another day – another question on notice.
In estimates I asked Treasury a relatively straightforward question as to how much money in remittances were sent offshore by Australian companies using offshore labour.
I also asked how much tax was withheld on these payments.
The Treasury simply didn’t know.
To think we’ve just signed a free trade agreement with India that is going to allow Australian companies to use much cheaper Indian labour you would think that Treasury would be tracking this wouldn’t you?
Or did we just undermine our own labour force without so much as a guess as to what it’s going to do to the tax base that pays the most tax!
Economics Legislation Committee
26/02/2025
Estimates
TREASURY PORTFOLIO
Department of the Treasury
Senator RENNICK: This is my last question, Chair. I note Westpac last week have now offshored another 160 jobs to the Philippines. I know we’ve recently signed a free trade agreement with India. Do we know how much money in remittances is getting sent offshore in terms of wages paid either for outsourcing or people coming onshore? For example, I’ve been told that there are people coming from the Philippines to build the transmission lines between Wagga and South Australia. Is that something that Treasury tracks in terms of how much in remittances is going offshore and to each country? And, if so, how much withholding tax is being withheld on those payments?
Mr Tinning: We might need to take that one on notice.
Senator RENNICK: So you’re not sure if you do that? Okay, no worries.
