To: The Finance Minister, The Prime MInister, the Government
We need to offer incentives to keep jobs in Australia rather than offshoring. Currently governments of other countries offer tax incentives to employ in their country and we need to at least offset that with incentives of our own. Currently the cost equation only favours offshoring marginally and when process efficiency is taken into account it would favour Australian labour.
Why is this important?
We want to grow as a nation and offer our children lots of opportunities. So many corporations are moving jobs overseas under a false sense of economy and value, in the end decreasing the amount of money circulating in our economy. The benefits of onshoring would be all encompassing - such as higher employment, keeping the money in Australia and the joy of actually having a process that works.
Also review Taxes Subsidise Off-Shoring:
The Australian taxpayer currently subsidises corporations to send jobs offshore.
Among the companies in our industry that have sent jobs off-shore are
ANZ, NAB, Westpac, and Suncorp. Between them these companies recorded
combined after tax profits of $18.44 billion last year.
Here’s how your tax subsidises these profits.
When a corporation is sending jobs off shore the following tax results flow:
• All set up costs are deductible (including travel, legal, off-shore skills
development, IT etc)
• All implementation costs are deductible (including redundancies)
• All fees paid to the off shore provider for the “new” service are deductible
against Australian income
• None of the wages paid to the offshore provider’s workforce are taxable
• None of the off-shore provider’s profits are taxable in Australia (e.g. Genpact
in based in India but registered in Bermuda, a renowned tax haven).
To make it worse, employers who send jobs offshore don’t pay State payroll
taxes on the salaries of the off shore workforce.
It’s time for an urgent review of tax treatment of off-shoring
How it will be delivered
Via email at this point.