Union win on tax transparency in Australia is a victory for workers everywhere
Nov 28, 2024
PSI-member unions in Australia have fought back corporate lobbyists to secure new laws which require large multinational companies to publicly disclose their global profits and tax payments.
Under the new legislation major companies operating in Australia will have to reveal their global tax structure and payments - opening up new avenues for workers around the world to expose tax dodging and bargain for higher wages.
Karen Batt of the Community and Public Sector Union said
"Tax avoidance by multinational corporations reduces the funding available for the essential public services that we all rely on. The CPSU welcomes this Bill as a step in the right direction."
The legislation, known as public country-by-country reporting (CBCR), represents the strongest corporate tax transparency measure in the world. It will ensure that the public can see which companies aren’t paying their fair share, how much tax they are dodging, and which tax havens they use.
PSI General Secretary Daniel Bertossa said:
"This success would not have happened without unions leading the fight. This win highlights the power of global union solidarity. What is good for workers in Australia is good for workers in the global south, where unions will gain new possibilities to expose multinational tax dodgers, reveal hidden profits and bargain for higher wages."
Australia's union movement successfully pushed the Labor Party to include public CBCR in its platform while in opposition. After Labor formed a government, unions maintained pressure, pushing back against intense lobbying from big corporations - including Meta - and interference from the Organisation for Economic Co-operation and Development (OECD).
Through PSI, unions from around the world reached out to Labor Prime Minister Albanese encouraging him not to back down. The passage of the new law represents a major step beyond the limited and flawed measures proposed by the OECD and the European Union.
Bertossa said:
"The Australian government has shown real resolve in standing up to corporate lobbyists. Now it’s time for other countries to follow suit and implement public CBCR. Public service unions around the world are leading the push for greater tax transparency, and Australia’s example proves these demands can be made reality.
As the United Nations prepares to negotiate a global tax convention, the victory in Australia shows how unions and campaigners can achieve meaningful reform. Wealthier countries can be convinced to break ranks and push beyond the OECD minimal standards. Unions are key to making that happen, as long as we maintain the pressure and demonstrate that a win for workers somewhere is a victory for workers everywhere.”