Yahoo Finance 'Furious': Taxpayers slam relief for corporates
The government’s plans to relieve corporates during the coronavirus have been met with outrage by Aussie taxpayers who believe workers should have been top priority.
On Wednesday March 18, the government announced Australia’s ailing airlines would receive a $715 million bailout package in the form of waived fees.
Deputy Prime Minister Michael McCormack said the government would also refund fees paid since February 1, with the move expected to create an upfront benefit of $159 million.
But while the move may have been welcomed by airlines, taxpayers are reeling.
“All these corporate bailouts to companies that don’t pay taxes...how does that work again?” One user tweeted.
“I can't believe this, every day I become more furious. They don't pay tax yet we are doing socialism for corporations meanwhile small business and workers they screw,” another tweeted.
Some Aussies argued corporates should be subject to the same advice Australia’s attorney general, Christian Porter, gave casuals last week.
Porter suggested the higher rate of hourly pay casual workers receive mean many will have “already made provisions” if forced to take two-weeks unpaid leave because of the coronavirus crisis, and the government will not “jump to a solution in anticipation of a problem”.
“I'm sorry but didn't Qantas and Virgin put some money aside for just such an eventuality? Casual workers apparently should have,” one user tweeted.
I'm sorry but didn't Qantas and Virgin put some money aside for just such an eventuality? Casual workers apparently should have.
— 💧Chris Hudson (@_ChrisHudson_) March 17, 2020
Vulnerable Australians are similarly outraged, calling on the government to raise the dole rate.
#auspol has anyone noticed how so much tax payers money being given away to big business and no one is asking can we afford it?
Yet Newstart money has not increased for 20 years. Reason unaffordable. I dont buy the argument thst it is a recurring expense.— Valerie deBritt (@KerryWitch) March 18, 2020
Qantas’ history of tax-paying
The national carrier paid around $253 million in corporate tax in the 2019 financial year (29.6 per cent), however it spent almost a decade paying no tax at all as it recovered from the global financial crisis, a union dispute and a $2.8 billion loss in 2014.
Its $0 tax bill is, however, completely legal: Australia allows companies to carry forward their losses, to be offset by future profits.
CEO Alan Joyce, who took home $23.8 million last year, has chosen to forgo his salary as his company battles the coronavirus crisis.
Virus worse than the GFC
Joyce, who was forced to stand down almost 20,000 staff members this week, defended his decision to do so, saying the virus was “the worst crisis” the aviation industry has faced.
“I know for the economy it's probably going to be a lot worse than the GFC," Joyce said.
"We're not making people redundant and we're trying this mechanism to make sure we can get through and survive and they have a job at the end of the day."
The airline made an $891 million profit in 2018/19 but has been decimated by the spread of the virus and escalating lockdown measures.
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