Media Release. Sydney. 16 May, 2019.
NEW REPORT SHOWS THE LACK OF TRANSPARENCY AND ACCOUNTABILITY OF MILLIONS OF DOLLARS IN AGED CARE FUNDING
The Australian Nursing and Midwifery Federation (ANMF) says a new report examining the tax and financial practices of some of Australia’s richest family-owned nursing home operators, provides further evidence of the lack of transparency and accountability for public funding for the aged care sector.
The Report – All in the Family: Tax and Financial Practices of Australia’s Largest Family Owned Aged Care Companies – was prepared by Jason Ward, the Principal Analyst for the Centre for International Corporate Tax Accountability & Research (CICTAR).
According to the Report, the country’s six largest family-owned aged care providers received over $711 million in annual federal funding ($60,000 per year per resident) – operating 130 facilities, with almost 12,000 beds.
The Report finds the companies have ‘complex corporate structures, intertwined with trusts, that appear specifically designed to avoid tax,’ which are ‘clear examples of why simple reforms are needed to restore public integrity in both aged care and the broader tax system’.
Key recommendations from the Report are:
· All entities receiving over $10 million in annual federal funding, must file full and complete financial statements with ASIC, with no exceptions;
· Immediate formation of a public register of beneficial ownership, including trusts; and
· A minimum tax of 30% on distributions from discretionary trusts and an examination of further trust reforms to bring Australia in line with global standards.