We are advocating for the Government, as part of its response to this consultation, to introduce rules that require extractive companies listed or based in Australia to disclose all payments made to governments on a country-by-country and project-by-project basis in line with United States and forthcoming European Union legislation.

Aside from helping tackle aggressive tax minimisation, increased transparency of payments made by extractive companies provides a wide range of benefits. It mitigates risks of corruption and enables populations to hold their governments to account over the exploitation of non-renewable natural resources. It empowers policymakers and citizens to ensure that the wealth generated by extractive industries is used to fund sustainable development and reduce aid dependency in resource-rich countries. Increased transparency also enables investors to better assess the financial, political and reputational risks to which extractive companies are often exposed, while fostering more stable operating environments that enhance prospects for investment returns. Indeed, there is now the possibility that Australian extractive companies will lose out on investment to competitors on markets that are introducing transparency requirements…