Media releases

Visa Privatisation 2.0 Lowers Tax Obligations for Bidders

May 31, 2021

ANDREW GILES MP
SHADOW MINISTER FOR MULTICULTURAL AFFAIRS
SHADOW MINISTER FOR CITIES AND URBAN INFRASTRUCTURE
SHADOW MINISTER ASSISTING FOR IMMIGRATION AND CITIZENSHIP
MEMBER FOR SCULLIN

The Morrison Government is planning to lower the tax obligations of private bidders competing to run Australia’s visa processing system.

According to reports in the AFR, the plan could allow large multinational corporations to win government contracts by watering down their tax obligation requirements.

Previously, an ‘exemplary tax record’ was needed. Now, only a ‘satisfactory statement of tax record’ is required.

This could have wider implications for whole-of-government outsourcing, as large multinationals facing tax audits could potentially retain satisfactory tax record status.

The exemplary tax record threshold considers any tax disputes in the previous five years as well as tax disputes in other jurisdictions.

The Morrison Government has wasted $100 million and nearly eight years trying to sell off our visa processing system to the highest bidder.

Labor and the Community and Public Sector Union (CPSU) stopped this in its tracks. But now the Morrison Government has brought the visa privatisation plan back from the dead.

The original plan was abandoned after Scott Morrison’s best mate Scott Briggs had to vacate his role in one bid following intense scrutiny of the visa privatisation plan.

A decision to outsource Australia’s visa system is expected in the next month. This will have major ramifications for Australia’s visa processing system.

Visas are core government business but Mr Morrison wants to hand them over to this mates.

Labor is opposed to any attempts to outsource Australia’s visa system.

SIGN UP FOR MY SCULLIN UPDATE NEWSLETTER