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CIMIC Group Limited Annual Report 2016 |
Sustainability Report
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TAX POLICY
The Group is committed to managing all taxes in a sustainable manner with regard to the commercial and social imperatives of our
business and stakeholders. The Group does not undertake purely tax driven transactions. Specifically, no innovative or aggressive tax
planning transaction is undertaken and all transactions must have a legitimate business purpose.
In 2016, the Group’s effective tax rate was 25.4%, compared to the Australian corporate tax rate of 30%, primarily due to refunds of
overpaid income taxes relating to divestment activity that took place in 2014. Our performance over the past four years is laid out in the
‘Measuring our performance’ table in this Sustainability Report. Despite the drop in rate in 2016, the Group continued to maintain an
average effective tax rate of 30% over the last three years. Based on Australian Taxation Office reported figures, for the 2014/15 year
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,
CIMIC ranked 13
th
in respect of the amount of tax payable by Australian public and foreign-owned corporate tax entities.
CIMIC understands that corporate tax payable by the Group provides important contributions to the financing of government services
and programs, and the provision of important infrastructure. In addition, the Group is a substantial generator of payroll tax, as well as
excise and stamp duty, which also contributes to government revenue.
CIMIC does not receive significant financial aid from governments, apart from standard tax relief measures that are available to similar
businesses in the jurisdictions where CIMIC operates such as the Australian Government’s Research and Development tax incentives or
accelerated depreciation allowances
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.
POLITICAL DONATIONS
In keeping with the Code, the Group did not make any donations, either in kind or directly, to political organisations, political parties,
politicians, or trade unions in 2015 or 2016.
LOCAL COMMUNITY ENGAGEMENT
The objectives of the Group’s Sustainability Policy, issued in 2016, include amongst other things, encouraging initiatives and successfully
delivering projects that meet client expectations, provide value for money, and leave net positive legacies for CIMIC Group, our clients,
users, the environment and communities. We work with relevant community stakeholders, especially those most affected by our
operations, and seek to identify and address their concerns and expectations. Each Operating Company has its own community
engagement policy and framework. We also incorporate a Stakeholder Engagement Plan in the planning process for each project, which
includes the recording and tracking of the management in relation to community concerns.
From time-to-time our construction activities may impinge on local communities as we deliver infrastructure projects for our clients.
When they do, we try to minimise the impact of our activities by engaging proactively, being approachable and developing positive
relationships with community members. We understand that communities may be concerned about the potential impact of traffic, noise,
dust, access changes, the siting of new infrastructure (i.e. tunnel vents or noise walls) or even the resumption of property. Generally
these impacts are the outcome of decisions made by our clients. However, our Operating Companies will seek to minimise these impacts
as far as possible and to carry out the work in a proactive, approachable, empathetic and positive way.
The Group has not identified any incidents of violations involving the rights of Indigenous peoples during the reporting period.
COMMUNITY INVESTMENT
Our objectives are to deliver shared value for the community and CIMIC Group. For the community, our initiatives should make a
tangible, genuine and lasting improvement to the quality of people’s lives.
The Group may support local community groups and charities through sponsorships and donations that are legal, ethical and further the
interests of the Group, and have mutual benefit to the community or broader society and CIMIC Group. During the 2016 Financial Year,
the Group directly gave more than $0.34 million to the community through partnerships, sponsorships, donations and workplace giving.
Our people are also encouraged to fundraise and volunteer to help create sustainable communities.
Support for Central Queensland Rescue Helicopter Service (CQ Rescue) Mackay and Capricorn were part of Thiess’ regional partnerships
for 2016. This support enables CQ Rescue to continue to provide world class aero-medical and emergency rescue services 24/7 and 365
days of the year to all residents, workers and visitors in and around Central Queensland. Sponsorship of these critical emergency service
providers ensured the Group’s mining related sites and mining communities in the Bowen and Callide Basins were covered for any
eventuality. This year saw an increase in the number of rescues across the region; through Thiess’ support CQ Rescue was able to service
these requests and save lives. Support also extended to individual site participation in CQ Rescue activities, sponsoring signature
fundraising events, and coordinating T-shirt drives which raised additional funds. In 2017, the ongoing relationship with CQ Rescue will
see Thiess as a key sponsor of pilot and paramedic training; all vital requirements to enable ongoing day and night time rescues.
Thiess’ 21 year partnership with Hear and Say has changed the lives of thousands of Queensland children with a hearing impairment. In
2016, Thiess continued its support of Hear and Say by sponsoring the Child Champion Program, where ‘Harrison’, the sponsored child,
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2014-15 Report of Entity Tax Information,
Corporate Tax Transparency, Australian Taxation Office.
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Governments at local, State and Federal levels are important clients. The Group does receive income from Governments in the form of fees,
reimbursement of costs or contractual entitlements for infrastructure construction and operations and maintenance work performed on a competitively
tendered basis.
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