Executive summary

[1]        See report, p. 12; Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 82.

[2]        For further details, see report, pp. 3–4.

[3]        Leading Aged Services Australia, Submission 15, p. 11.

[4]        Aged Care Guild, Submission 17, p. 11.

[5]        Mr Jeremy Hirschhorn, Deputy Commissioner, Public Groups and International, Australian Taxation Office, Committee Hansard, 4 September 2018, p. 32.

[6]        Australian Taxation Office, Submission 14, p. 7.

[7]        NSW Nurses and Midwives' Association, Submission 2, p. 6.

[8]        Combined Pensioners and Superannuants Association, Submission 1, p. 4.

[9]        Mr Ian Yates, Chief Executive, COTA Australia, Committee Hansard, 17 July 2018, p. 54.

Chapter 1 - Introduction

[1]        Journals of the Senate, No. 97, 10 May 2018, p. 3104.

[2]        See Journals of the Senate, No. 106, 13 August 2018, p. 3423; and Journals of the Senate, No. 114, 10 September 2018, p. 3654.

[3]        Journals of the Senate, No. 97, 10 May 2018, p. 3104.

[4]        From the 2017–18 income year, companies that are 'base rate entities' must apply the lower 27.5 per cent company tax rate. See Australian Taxation Office, Changes to company tax rates, https://www.ato.gov.au/Rates/Changes-to-company-tax-rates/?page=1#Base_rate_entity_company_tax_rate (accessed 2 October 2018).

[5]        Net tax as defined by the ATO is essentially the amount of tax owed for the income year, before refundable credits are taken into consideration.

[6]        Australian Taxation Office, Taxation statistics 2015–16, https://www.ato.gov.au/About-ATO/Research-and-statistics/In-detail/Taxation-statistics/Taxation-statistics-2015-16/ (accessed 2 October 2018).

[7]        Senate Economics References Committee, Part III—Much heat, little light so far, May 2018, p. 29.

[8]        Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 7.

[9]        Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 8.

[10]      The Hon Scott Morrison MP, Treasurer, 'Levelling the playing field for Australian investors: Taxation of Stapled Structures', Media Release, 27 March 2018; The Hon Scott Morrison MP, Treasurer, 'Making sure multinationals pay their fair share', Media Release, 28 March 2018.

[11]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 43. See also Mr Jason Ward, Spokesperson, Tax Justice Network-Australia, Committee Hansard, 17 July 2018, p. 1.

[12]      The Hon Scott Morrison MP, Prime Minister of Australia, 'Royal Commission into aged care quality and safety', Media Release, 16 September 2018.

[13]      Information relating to the Royal Commission into Aged Care Quality and Safety, including the Commission's terms of reference, can be accessed at: https://agedcare.royalcommission.gov.au

Chapter 2 - Overview of aged care in Australia

[1]        Australian Institute of Health and Welfare, Use of aged care services before death, March 2015, p. 4.

[2]        Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 2.

[3]        Productivity Commission, Report on Government Services 2018—Chapter 14: Aged care services, January 2018, p. 3.

[4]        Department of the Treasury, 2015 Intergenerational Report, March 2015, pp. xvii and 71, https://treasury.gov.au/publication/2015-intergenerational-report/ (accessed 23 November 2018).

[5]        Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, pp. 122–123.

[6]        Department of Health, Better Quality of Care—establishing an Aged Care Quality and Safety Commission, http://www.health.gov.au/internet/budget/publishing.nsf/Content/budget2018-factsheet81.htm (accessed 18 October 2018).

[7]        Residential aged care places are capped and increase annually through the Aged Care Approvals Round (ACAR).

[8]        Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 15.

[9]        The Australian Government provides approximately 96 per cent of the government funding for aged care services. State and territory governments provide the remainder.

[10]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, pp. 97–98.

[11]      The schedule of current Australian Government aged care subsidies and supplements (from 20 September 2018) is available at: https://agedcare.health.gov.au/funding/aged-care-subsidies-and-supplements/schedule-of-subsidies-and-supplements (accessed 12 November 2018).

[12]      During 2015–16, real growth in expenditure per resident per day through the basic care subsidy exceeded the Australian Government's budgeted growth by two per cent, resulting in an increase to forecasted expenditure over four years of $3.8 billion. In response to this higher than expected increase, the Government announced changes in the 2015–16 Mid-Year Economic and Fiscal Outlook (MYEFO) and the 2016–17 Budget to ACFI scoring and subsidy indexation.[12] These changes were complemented by a pause in indexation on all ACFI subsidies in 2017–18, and a partial pause on indexation in 2018–19.

[13]      The current schedule of aged care subsidies and supplements are available from the Department of Health website at: https://agedcare.health.gov.au/funding/schedule-of-subsidies-and-supplements-from-20-september-2018

[14]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 97.

[15]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 99. Direct Australian Government expenditure does not include Age Pension payments.

[16]      Department of Human Services, Payment rates for Age Pension, https://www.humanservices.gov.au/individuals/enablers/payment-rates-age-pension/39901 (accessed 16 October 2018).

[17]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 98.

[18]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 119.

[19]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 112.

[20]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 120.

[21]      An operational place refers to a residential care place that was allocated to a provider and has since become available for a person to receive care. A provisionally allocated place refers to a residential care place allocated through Aged Care Approval Rounds (ACAR) that is not yet operational. As at 30 June 2017, there were a total of 247,907 allocated places for residential aged care, but only 200,689 of these were operational places.

[22]      Department of Health, 2016–17 Report on the Operation of the Aged Care Act 1997, November 2017, p. 44; Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 82.

[23]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 82.

[24]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 82.

[25]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 82.

[26]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 82.

[27]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 83.

[28]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, pp. 95–96, and 103.

[29]      Employee costs (wages and management fees) represented 70 per cent ($11.8 billion) of the total expenses incurred by aged care providers in 2016–17, an increase from 67 per cent of total expenses in 2015–16.

[30]      Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA)

[31]      EBITDA per resident per annum

[32]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 96.

[33]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 108.

[34]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 109.

Chapter 3 - Tax practices of for-profit aged care providers

[1]        Regis, Estia and Japara are aged care companies listed on the Australian Securities Exchange (ASX).

[2]        Data for BUPA is 2017, Opal is 2016 and all others are the 2017 financial year. Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 11.

[3]        Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 11.

[4]        Australian Taxation Office, Submission 14, p. 4.

[5]        Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 7.

[6]        Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 5.

[7]        Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 37.

[8]        Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 38.

[9]        Mr Jason Ward, Spokesperson, Tax Justice Network-Australia, Committee Hansard, 17 July 2018, p. 1. See also Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 9.

[10]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 6.

[11]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 41.

[12]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, pp. 6 and 43.

[13]      See, for example, StewartBrown, Submission 3; Aged Care Industry Association, Submission 9; Leading Aged Services Australia, Submission 15; Aged Care Guild, Submission 17.

[14]      Aged Care Industry Association, Submission 9, p. 4.

[15]      Aged Care Guild, Submission 17, p. 2.

[16]      StewartBrown, Submission 3, p. 6. See also Aged Care Guild, Submission 17, p. 10; Mr Grant Corderoy, Senior Partner, StewartBrown, Committee Hansard, 17 July 2018, p. 34.

[17]      Leading Aged Services Australia, Submission 15, p. 3.

[18]      Leading Aged Services Australia, Submission 15, p. 11.

[19]      Leading Aged Services Australia, Submission 15, p. 11.

[20]      Leading Aged Services Australia, Submission 15, p. 14.

[21]      Ms Annie Butler, Federal Secretary, Australian Nursing and Midwifery Federation, Committee Hansard, 4 September 2018, p. 2.

[22]      Mr Ian Yates, Chief Executive, COTA Australia, Committee Hansard, 17 July 2018, p. 51.

[23]      Mr Sean Rooney, Chief Executive Officer, Leading Age Services Australia, Committee Hansard, p. 24.

[24]      Mr Sean Rooney, Chief Executive Officer, Leading Age Services Australia, Committee Hansard, p. 24.

[25]      Australian Taxation Office, Submission 14, pp. 3 and 5. See also Mr Jeremy Hirschhorn, Deputy Commissioner, Public Groups and International, Australian Taxation Office, Committee Hansard, 4 September 2018, p. 31.

[26]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 12.

[27]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 15.

[28]      Bupa, Submission 21, p. 5.

[29]      Bupa, Submission 21, p. 4.

[30]      Bupa, Submission 21, p. 5.

[31]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 20.

[32]      DAC Finance Pty Ltd is Opal's operating company for its aged care services. See Opal Aged Care, Opal Simplified Structure, [p. 1] (tabled 4 September 2018).

[33]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 19.

[34]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 20.

[35]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 22.

[36]      Opal Aged Care, Submission 21, p. 4.

[37]      Opal Aged Care, Submission 21, p. 4.

[38]      Mr Ben Feek, Chief Financial Officer, Opal Aged Care, Committee Hansard, 4 September 2018, p. 12.

[39]      Mr Ben Feek, Chief Financial Officer, Opal Aged Care, Committee Hansard, 4 September 2018, p. 11.

[40]      Opal Aged Care, Submission 21, p. 4.

[41]      Mr Ben Feek, Chief Financial Officer, Opal Aged Care, Committee Hansard, 4 September 2018, pp. 13–14.

[42]      Mr Ben Feek, Chief Financial Officer, Opal Aged Care, Committee Hansard, 4 September 2018, p. 14.

[43]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 23.

[44]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 24.

[45]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 26.

[46]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 26.

[47]      Mr David Armstrong, Chief Executive Officer, Allity Pty Ltd, Committee Hansard, 17 July 2018, p. 43.

[48]      Mr David Armstrong, Chief Executive Officer, Allity Pty Ltd, Committee Hansard, 17 July 2018, p. 43.

[49]      Allity, Submission 20, p. 5. See also Mr David Armstrong, Chief Executive Officer, Allity Pty Ltd, Committee Hansard, 17 July 2018, pp. 43–44 and 47.

[50]      Mr David Armstrong, Chief Executive Officer, Allity Pty Ltd, Committee Hansard, 17 July 2018, p. 44. See also Allity, Submission 20, p. 18.

[51]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 29.

[52]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 29.

[53]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 29.

[54]      Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 29.

[55]      Mr Andrew Sudholz, Chief Executive Officer, Japara Healthcare, Committee Hansard, 4 September 2018, p. 17.

[56]      Regis Healthcare Limited, Submission 7, pp. 1–2.

Chapter 4 - Broader stakeholder views

[1]        Australia's transfer pricing rules seek to avoid the underpayment of tax in Australia by having businesses price related party international dealings according to what is expected from independent parties in the same situation. See ATO, International transfer pricing—introduction to concepts and risk assessment, https://www.ato.gov.au/print-publications/international-transfer-pricing---introduction-to-concepts-and-risk-assessment/?=top_10_publications (accessed 1 November 2018).

[2]        Announced in the 2016–17 Budget, the hybrid mismatch rules aim to prevent multinational companies from gaining an unfair competitive advantage by avoiding income tax or obtaining double tax benefits through hybrid mismatch arrangements. These arrangements exploit differences in the tax treatment of an entity or instrument under the laws of two or more tax jurisdictions. See ATO, Implementation of the OECD hybrid mismatch rules, https://www.ato.gov.au/General/New-legislation/In-detail/Other-topics/International/Implementation-of-the-OECD-hybrid-mismatch-rules/ (accessed
1 November 2018).

[3]        Australian Taxation Office, Submission 14, pp. 6–7.

[4]        Australian Taxation Office, Submission 14, p. 7.

[5]        Australian Taxation Office, Submission 14, p. 7. See also Mr Jeremy Hirschhorn, Deputy Commissioner, Public Groups and International, Australian Taxation Office, Committee Hansard, 4 September 2018, p. 33.

[6]        Australian Taxation Office, Submission 14, p. 8.

[7]        Australian Taxation Office, Submission 14, p. 7.

[8]        Mr Jeremy Hirschhorn, Deputy Commissioner, Public Groups and International, Australian Taxation Office, Committee Hansard, 4 September 2018, p. 33.

[9]        Australian Taxation Office, Submission 14, p. 7.

[10]      Australian Taxation Office, Submission 14, p. 8.

[11]      Parliament of Australia, Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018, https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6192 (accessed 21 November 2018).

[12]      Australian Nursing and Midwifery Federation, Submission 11, p. 7.

[13]      Australian Nursing and Midwifery Federation, Submission 11, pp. 7 and 13.

[14]      Combined Pensioners and Superannuants Association, Submission 1, pp. 4 and 6.

[15]      Combined Pensioners and Superannuants Association, Submission 1, p. 4.

[16]      Department of Health, The Aged Care Workforce 2016, March 2017, p. 27, as cited in Combined Pensioners and Superannuants Association, Submission 1, p. 5.

[17]      NSW Nurses and Midwives' Association, Submission 2, p. 6.

[18]      NSW Nurses and Midwives' Association, Submission 2, p. 6.

[19]      See, for example, Australian Nursing and Midwifery Federation (TAS Branch), Submission 4; Australian Nursing and Midwifery Federation (SA Branch), Submission 5; Queensland Nurses and Midwives' Union, Submission 6.

[20]      Mr Jason Ward, Spokesperson, Tax Justice Network-Australia, Committee Hansard, 17 July 2018, p. 2.

[21]      Adjunct Associate Professor Michael West, Private Capacity, Committee Hansard, 17 July 2018, p. 13.

[22]      Mr Ian Yates, Chief Executive, COTA Australia, Committee Hansard, 17 July 2018, p. 54.

[23]      Mr David Armstrong, Chief Executive Officer, Allity Pty Ltd, Committee Hansard, 17 July 2018, p. 48. See also Mr Sean Rooney, Chief Executive Officer, Leading Age Services Australia, Committee Hansard, pp. 25–26.

[24]      Mr Grant Corderoy, Senior Partner, StewartBrown, Committee Hansard, 17 July 2018, pp. 31–32.

[25]      Aged Care Industry Association, Submission 9, p. 7. See also COTA Australia, Submission 23, p. 5.

[26]      See, for example, Australian Nursing and Midwifery Federation, Submission 11, Combined Pensioners and Superannuants Association, Submission 1; NSW Nurses and Midwives' Association, Submission 2; Australian Nursing and Midwifery Federation (Tas Branch), Submission 4; Queensland Nurses and Midwives' Union, Submission 6.

[27]      Australian Nursing and Midwifery Federation, Submission 11, p. 13.

[28]      Australian Nursing and Midwifery Federation, Submission 11, p. 13.

[29]      Combined Pensioners and Superannuants Association, Submission 1, p. 7.

[30]      Queensland Nurses and Midwives' Union, Submission 6, p. 7.

[31]      NSW Nurses and Midwives' Association, Submission 2, p. 12.

[32]      NSW Nurses and Midwives' Association, Submission 2, p. 12.

[33]      Ms Bronagh Power, Policy Officer, Combined Pensioners and Superannuants Association, Committee Hansard, 17 July 2018, p. 17.

[34]      See, for example, Mr Grant Corderoy, Senior Partner, StewartBrown, Committee Hansard, 17 July 2018, p. 35; Mr Matthew Richter, Chief Executive Officer, Aged Care Guild, Committee Hansard, 17 July 2018, p. 42; Mr Ben Feek, Chief Financial Officer, Opal Aged Care, Committee Hansard, 4 September 2018, pp. 12–13.

[35]      Mr Jason Ward, Spokesperson, Tax Justice Network-Australia, Committee Hansard, 17 July 2018, p. 2. See also Committee Hansard, 17 July 2018, p. 3.

[36]      Mr Jeremy Hirschhorn, Deputy Commissioner, Public Groups and International, Australian Taxation Office, Committee Hansard, 4 September 2018, p. 32.

[37]      StewartBrown, Submission 3, p. 5. See also Aged Care Guild, Submission 17, p. 11; Mr Grant Corderoy, Senior Partner, StewartBrown, Committee Hansard, 17 July 2018,
pp. 33–34.

[38]      Aged Care Guild, Submission 17, p. 11.

[39]      Aged Care Guild, Submission 17, p. 11. See also StewartBrown, Submission 3, p. 5.

[40]      Aged Care Industry Association, Submission 9, pp. 6–7.

[41]      Mr Ben Feek, Chief Financial Officer, Opal Aged Care, Committee Hansard, 4 September 2018, p. 12.

[42]      Mr Jason Ward, Spokesperson, Tax Justice Network-Australia, Committee Hansard, 17 July 2018, pp. 8–9.

[43]      StewartBrown, Submission 3, p. 6. See also Aged Care Guild, Submission 17, p. 11.

[44]      Bupa, Submission 21, p. 3.

[45]      StewartBrown, Submission 3, p. 9. The StewartBrown December 2017 Aged Care Financial Performance Survey incorporated financial data from over 915 residential aged care facilities across Australia.

[46]      Leading Aged Services Australia, Submission 15, p. 9.

[47]      StewartBrown, Submission 3, pp. 6 and 14.

[48]      StewartBrown, Submission 3, p. 6.

[49]      Aged Care Guild, Submission 17, p. 2.

[50]      Aged Care Guild, Submission 17, p. 7.

[51]      Aged Care Guild, Submission 17, p. 7.

[52]      Aged Care Guild, Submission 17, p. 7. GICS refers to the ASX classification system for industry sector groupings based on Global Industry Classification Standards.

[53]      Mr Andrew Sudholz, Chief Executive Officer, Japara Healthcare, Committee Hansard, 4 September 2018, pp. 19–20.

[54]      In its sixth annual report, ACFA noted that '[s]ome items previously classified as "other revenue" have now been apportioned to more appropriate revenue items. This means that reported "other" income is 26 per cent less in 2016–17 compared with 2015–16'. Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector,
July 2018, p. 97.

[55]      Aged Care Guild, Submission 17, p. 6. See also Mr Matthew Richter, Chief Executive Officer, Aged Care Guild, Committee Hansard, 17 July 2018, p. 40.

[56]      Mr Grant Corderoy, Senior Partner, StewartBrown, Committee Hansard, 17 July 2018, p. 32.

[57]      Aged Care Crisis Inc., Submission 32, p. 35.

[58]      Public Services International, Submission 13, [pp. 3–4].

[59]      Public Services International, Submission 13, [p. 3].

[60]      Committee Hansard, 4 September 2018, pp. 28–29.

Chapter 5 - Transparency

[1]        Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 6.

[2]        Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 41.

[3]        Australian Accounting Standards allow entities that do not classify themselves as 'reporting entities' to utilise reduced disclosure requirements, namely through the preparation of Special Purpose Financial Statements (SPFS). These SPFS can still be lodged with ASIC in satisfaction of legislative lodgement requirements. 

[4]        Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, pp. 6 and 43.

[5]        Mr Jason Ward, Spokesperson, Tax Justice Network-Australia, Committee Hansard, 17 July 2018, p. 1.

[6]        Combined Pensioners and Superannuants Association, Submission 1, p. 8.

[7]        Professor Richard Eccelston and Mr Lachlan Johnson, Submission 8, [p. 4].

[8]        Australian Council of Trade Unions, Submission 10, pp. 1–2.

[9]        COTA Australia, Submission 23, p. 7.

[10]      Ms Annie Butler, Federal Secretary, Australian Nursing and Midwifery Federation, Committee Hansard, 4 September 2018, p. 7.

[11]      Adjunct Associate Professor Michael West, Private Capacity, Committee Hansard, 17 July 2018, p. 13.

[12]      Mr Ian Yates, Chief Executive, COTA Australia, Committee Hansard, 17 July 2018, p. 51.

[13]      Adjunct Associate Professor Michael West, Private Capacity, Committee Hansard, 17 July 2018, p. 16.

[14]      Mr Matthew Richter, Chief Executive Officer, Aged Care Guild, Committee Hansard, 17 July 2018, p. 41.

[15]      See, for example, Bupa, Submission 21, p. 6; Japara Healthcare Limited, answers to questions on notice, 4 September 2018 (received 19 September 2018), [p. 2].

[16]      Ms Norah Barlow, Chief Executive Officer and Managing Director, Estia Health Ltd, Committee Hansard, 4 September 2018, p. 25.

[17]      Japara Healthcare Limited, answers to questions on notice, 4 September 2018 (received 19 September 2018), [p. 2].

[18]      Japara Healthcare Limited, answers to questions on notice, 4 September 2018 (received 19 September 2018), [p. 2].

[19]      Department of Health, Submission 26, p. 3.

[20]      Aged Care Guild, Submission 17, pp. 8–9.

[21]      The ACFR involves a single template which consolidates the Annual Prudential Compliance Statement (APCS), Survey of Aged Care Homes, Home Care Financial Report, and Short Term Restorative Care Financial Report. Aged care providers must submit their stand-alone audited General Purpose Financial Report (GPFR) and audited opinion of their APCS at the same time as their ACFR. See Department of Health, Changes to financial reporting arrangements for residential and home care providers, https://agedcare.health.gov.au/programs/residential-care/changes-to-financial-reporting-arrangements-for-residential-and-home-care-providers (accessed 9 November 2018).

[22]      Aged Care Financing Authority, Sixth report on the Funding and Financing of the Aged Care Sector, July 2018, p. 93.

[23]      See, for example, Allity, Submission 20; StewartBrown, Submission 3; Aged Care Industry Association, Submission 9; Leading Aged Services Australia, Submission 15.

[24]      Allity, Submission 20, p. 6.

[25]      StewartBrown, Submission 3, p. 12.

[26]      Aged Care Industry Association, Submission 9, pp. 5–6.

[27]      Leading Aged Services Australia, Submission 15, p. 14.

[28]      Leading Aged Services Australia, Submission 15, p. 14.

[29]      Leading Aged Services Australia, Submission 15, p. 14.

[30]      Aged Care Industry Association, Submission 9, p. 5.

[31]      See Aged Care Act 1997, s. 86-3.

[32]      Dr Richard Cumpston, Submission 24, [p. 2].

[33]      Adjunct Associate Professor Michael West, Private Capacity, Committee Hansard, 17 July 2018, p. 12.

[34]      Mr Jeremy Hirschhorn, Deputy Commissioner, Public Groups and International, Australian Taxation Office, Committee Hansard, 4 September 2018, p. 31.

[35]      Mr Sean Rooney, Chief Executive Officer, Leading Age Services Australia, Committee Hansard, 17 July 2018, p. 27.

[36]      Mr Sean Rooney, Chief Executive Officer, Leading Age Services Australia, Committee Hansard, 17 July 2018, p. 25.

[37]      Mr Ian Yates, Chief Executive, COTA Australia, Committee Hansard, 17 July 2018, p. 53. See also COTA Australia, Submission 23, p. 7.

[38]      Australian Taxation Office, Voluntary Tax Transparency Code, https://www.ato.gov.au/Business/Large-business/In-detail/Tax-transparency/Voluntary-Tax-Transparency-Code/ (accessed 8 November 2018).

[39]      See Australian Taxation Office, Submission 14, p. 8.

[40]      Mr Jeremy Hirschhorn, Deputy Commissioner, Public Groups and International, Australian Taxation Office, Committee Hansard, 4 September 2018, p. 38.

[41]      Mr Ben Feek, Chief Financial Officer, Opal Aged Care, Committee Hansard, 4 September 2018, p. 15.

[42]      Mr Ben Feek, Chief Financial Officer, Opal Aged Care, Committee Hansard, 4 September 2018, p. 15.

[43]      Japara Healthcare Limited, answers to questions on notice, 4 September 2018 (received 19 September 2018), [p. 3].

[44]      See AASB, Consultation Paper—Applying the IASB's Revised Conceptual Framework and Solving the Reporting Entity and Special Purpose Financial Statement Problems, May 2018, https://www.aasb.gov.au/admin/file/content105/c9/ITC39_05_18.pdf (accessed
13 November 2018).

Coalition Senators Dissenting Report

[1]        See Table 2, Tax Justice Network-Australia, Tax avoidance by for-profit aged care companies: Profit shifting of public funds, May 2018, p. 11.

[2]        Congress of the United States Congressional Budget Office, International Comparisons of Corporate Income Tax Rates, March 2017, p. 2, https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/52419-internationaltaxratecomp.pdf (accessed 27 November 2018).

[3]        Mr Chris Jordan, Commissioner of Taxation, Committee Hansard, 25 October 2017, p. 109.

[4]        Mr Chris Jordan, Commissioner of Taxation, Committee Hansard, 25 October 2017, p. 109.

[5]        Mr Mark Konza, Deputy Commissioner, International, Committee Hansard, 28 February 2018, p. 114.