Robin Hood reforms or economic vandalism? Greens unveil Big Corporations Tax

The Greens have unveiled what they are describing as ‘Robin Hood’ tax reforms they hope will return them to the balance of power in the Federal Parliament.

They plan to take a total of $514 billion from big business over the next decade through (among other things) a 40 per cent tax on the excessive profits that will be channelled into significant cost of living support.

Addressing the National Press Club on Wednesday (28 August), Greens leader Adam Bandt said the share of income going to big corporations has never been higher, and price gouging practices are a key driver of inflation.

He said with many Australians at breaking point due to rising rents, mortgages and prices at the checkout, it was time to put an end to Labor’s cosying up to big corporations, which is fuelling the crisis.

The Greens leader said his party stood a good chance of winning a number of key Lower House seats at the next federal election to give them similar influence as they currently enjoy in the Senate, and held under the hung parliament during the Gillard Labor government.

“There are at least five new seats across the country where we believe we are in with a strong chance,” he said.

“In one of them, if only 300 people change their vote, the Greens could win the seat.

“Among voters under the age of 34 years old, the Greens are neck and neck with the Liberals and Labor.”

But while he said the Greens would back Labor to form a minority government, he stressed that the current Labor government was no friend of financially struggling Australians.

“Enough is enough. It’s time to make the big corporations and billionaires pay their fair share of tax,” Mr Bandt said.

“This election, the Greens will propose a package of Robin Hood reforms. The aim is simple – to make the big corporations and billionaires pay their fair share of tax to make life better for everyone.

“Today, I can announce the first of these Robin Hood reforms. We’re calling it our Big Corporations Tax and it has a number of components.

“The first component is targeted at big corporations who are making excessive profits beyond a normal return to shareholders. It will apply to companies with an annual turnover of over $100 million, taxing the excess profits these companies make.

“This new big corporations tax would apply to both Australian corporations and multinational corporations operating in Australia. Over the next decade, this tax is expected to raise $296 billion.”

He said the tax would provide “huge amounts of much-needed funding” to redirect to everyday people and help reduce the cost of living.

Two other components are the big corporations tax on the excessive profits of coal and other mining industries and significant reform to the existing Petroleum Resource Rent Tax so it “actually raises revenue”.

One of the first cost-of-living measures the Greens propose is to include dental work on Medicare.

“It will be one of several key policies to help people’s economic pain, paid for by taking on big corporations through the big corporations tax.”

The Greens state that independent costing by the Parliamentary Budget Office shows that their big corporations tax measures combined will raise $514 billion over the next decade.

Business leaders have hit back, however, saying the Greens policy would damage the economy.

Australian Chamber of Commerce and Industry chief executive Andrew McKellar described the policy as “irresponsible” and disconnected from reality.

He said it would discourage international investment in Australia.

“If people take a moment to analyse the practical impact of what’s been said and understand the fundamental damage it would do to personal economic security, they would understand it is ignorance and economic vandalism,” Mr McKellar said.

Minerals Council of Australia chief executive Tania Constable called the policy “economic sabotage” to undermine jobs and growth.

Finance Minister Katy Gallagher described the policy as nothing more than a non-serious “thought bubble”.

Acting Prime Minister Richard Marles said it was unrealistic – and besides, “the Labor Party is not about doing deals with the Greens”.

“We are focused on winning a majority at the next election in our own right … so that we can manage the economy for all Australians. We are seeking to win that majority based on what we’ve done.”