The overseas corporations suppling Australia’s $12 billion medical devices market are earning more than double in subsidies than what they are paying in tax, according to a new analysis which has been handed to the government.
According to an analysis by Private Healthcare Australia, around 300 medical device suppliers are estimated to only pay a total tax bill of around $310 million. “It’s important that we get this right, which is why Treasury is consulting widely about proposed changes to our multinational tax system,” he said.
Reversing the Hunt deal would save private health customers $400 million over four years and the budget $100 million, according to Private Healthcare Australia, which would be equivalent to 0.5 per cent of average health insurance premiums. The federal government sets the prices for more than 11,000 types of medical devices for privately insured Australians through the Prostheses List.