CBA boss says big tech should be in policymakers sights

Commonwealth Bank chief executive Matt Comyn says regulating big tech should be a “very important agenda item” for the federal government.

The head of Australia’s biggest bank defended domestic industries from accusations of a lack of competition and dominance by a few key players, saying the gaze of regulators and policymakers should also be directed at the global tech giants.

“I sometimes worry and wonder about the criticisms that are levelled on Australian companies, and particularly large Australian companies,” he told the Australian Financial Review’s Business Summit.

He said big corporates employed millions and the top 15 firms represented 42 per cent of corporate tax paid in the nation.

While the big bank boss welcomed the questions asked of corporate Australia in the form of various parliamentary committees – the latest round of which has been directed at the supermarket sector – he said there was “insufficient scrutiny” on major digital platforms and technology firms.

“I hope it is a very important agenda item for both the government and policymakers in this country,” he said.

Mr Comyn singled out Apple, which made roughly $12 billion in revenue and paid $160 million in corporate tax based on the 2020 corporate tax transparency report from the Australian Tax Office data.

“That leaves their corporate tax rate at effectively four per cent, so obviously we’re at 30.5 per cent.”

He also said when tech companies fronted official hearings, their “attitude towards answering questions is completely different to the attitude of Australian corporates”.

Also speaking at the event, Chinese Ambassador Xiao Qian reported progress on China’s review of tariffs it placed on Australian wine.

“Currently, Chinese authorities are reviewing and investigating our tariffs on Australian wine and things are moving on the right track, in the right direction,” he said.

Treasurer Jim Chalmers used his appearance to outline four policy priority areas aimed at fuelling growth and driving dynamism in the domestic economy.

This included streamlining the environmental approvals process and “sensible changes” to the Petroleum Resource Rent Tax.

“We agree there is a need to update Australia’s offshore regulatory gas arrangements and broader environmental approval processes,” he said.

By investing in better data and “clearer priorities”, he said, new oil and gas projects will get “faster yesses and faster nos”.

The government will also introduce a financial sector regulatory initiatives grid modelled on a system in the UK that is aimed at “co-ordinating regulatory effort”.

And close to 500 nuisance tariffs will be scrapped in the new financial year in a bid to make it easier to do business and boost productivity by cutting costs and reducing red tape.