Take a moment to read about the 25-year old protection offered rich big businesses. This explanation published by respected journalist Michael West given you a hint into what should be considered a scandal:
It’s quite the cosy little arrangement that some of Australia’s “old money” billionaires enjoy, courtesy of the federal government. It’s a cosy arrangement afforded to no other Australians, and a number of the country’s wealthiest individuals have fought tooth and nail to protect their privilege despite repeated attempts by parliament, the corporate regulator and Treasury to end it.
Billionaires such as Gina Rinehart, Anthony Pratt, Harry Triguboff, Frank Lowy, Kerry Stokes and dozens of other “old wealth” Australian families are exempted from having to produce audited financial accounts to the Australian Securities and Investments Commission (ASIC).
A total of 1,119 large proprietary companies are on this secret rich list; a result of “grandfathering” provisions of the corporations laws that were introduced by the government of Paul Keating 25 years ago.
The grandfathering exemption was put in place to give these wealthy proprietary companies time to adapt to a new financial reporting law introduced in 1995.
Introduced as a temporary plan by the Keating government, the list of exempt companies was to be reviewed after a few years but the Howard government stopped that move. The Rudd-Gillard government passed laws to limit the exemption, but the Coalition overturned them.
This an appalling situation, providing cover of darkness for thee businesses, while the rest of us here in the trenches are subject to tough regulation and oversight.
Rex Patrick is fighting to resolve this:
We need to rid the Corps Act of a 25 year old ‘temporary’ exemption allowing ‘rich list’ companies to NOT lodge financial reports with ASIC, facilitating aggressive tax avoidance. The @LiberalAus & @The_Nationals are opposed to closing the loophole which helps their mates #auspol pic.twitter.com/HujOGXK3fg
— Rex Patrick (@Senator_Patrick) July 26, 2021
This is a story that should anger Avery small business owner as it’s us who are carrying the cost of measures like this one, which appears to protect big businesses.