The largest six private aged care providers – BUPA, Opal, Regis, Estia, Japara and Allity – are using trusts and offshore tax havens to obscure profits and avoid paying tax, according to a recent report commissioned by the Australian Nursing and Midwifery Federation.
Allity has paid no tax in the past two years. Yet the major aged care providers continue to demand more handouts.
The report, published by the Tax Justice Network, noted that the largest six companies combined “received over $2.17 billion in government subsidies”, which represented 72 percent of total revenues.
BUPA made $663 million in Australia last year, 70 percent of which came from government.
Aged care is a profitable business. A recent survey by Bentleys Chartered Accountants revealed the average profit made from each resident in aged care in 2015 was $6,278. Management is also well rewarded – BUPA’s CEO was paid more than $3 million, and the CEO of Regis received $1 million.Read more