30 August 2024

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

| Chris Johnson
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Adam Bandt, Australian Greens Leader

Greens leader Adam Bandt unveils cost-of-living measure his party will be taking to the federal election. Photo: Michelle Kroll.

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.”

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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.”

Man holding a mock up of a Medicare card 'WITH DENTAL' written on it.

Greens leader Adam Bandt holding a mock-up of a Medicare card with dental. Photo: Michelle Kroll.

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.”

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Bandt ‘s pitch is that this is “transformative change”, as opposed to what he calls the “tinkering at the edges” of the major parties, so as not to upset the status quo which forms their donor base.

That all sounds honky dory. But the fact is, this is not transformative change. It is merely an attempt to squeeze the best deal from neoliberalism.

Transformative change starts with abandoning the falsehood that federal budgets are the same as a household budget. Bandt is clinging onto that notion – though it has not been the case from the time Australia abandoned a commodity backed currency.

Transformative change =

moving to a Modern Monetary system recognizing the facts about our currency

personal taxes based solely on keeping inflation in check and modifying behavior around destructive substance abuse and fast food

A Universal Commonwealth Royalty in recognition that we all own the resources that generate wealth

A jobs guarantee for anyone who wants to work (as opposed to current policy of planning for 4 – 5% unemployment as an inflation hedge and then demonizing those you made unemployed for even further political gain)

Ken Henry describes the current state of the tax system as an “intergenerational tragedy”, and along with many economists insists we must tax economic rents, capital gains, and land, and lower personal income tax. The IMF agrees that corporate profits have been a major factor behind inflation. Great to see the Greens joining the teals in talking up the need for major tax reforms, leaving the captured majors floundering at the starting line defending their donors, roiling up both the top end of town, and the usual rusted on naysaying global warming deniers in the comments 😀

“Communist with no money wants other people to pay more tax”.

Imagine my shock.

HiddenDragon8:05 pm 29 Aug 24

“Robin Hood reforms or economic vandalism?”

Probably not so much Robin Hood as Men In Tights or Wile E. Coyote, considering the likelihood of the Australian political and bureaucratic class being able to extract that much additional revenue from some very smart, tough and ruthless people in the domestic and international business sectors.

That said, an amount equal to about half of what the Greens are fantasizing about adding to spending will be needed just to cover projected federal budget deficits, based on current spending programs, over the coming decade – so when the major parties have finished rubbishing the Greens’ revenue grab, they might be wise to look at which bits of the Greens’ grab could actually be made to work.

I’m.stunned that this Leon Trotsky follower is even allowed to be in our parliament. This idiotic policy will ruin business and investment in our country. Vote this Communist loving cretin into.political oblivion. He’s dumb and dangerous.

This is because democracy. Even you could get elected.

Yes I am fully aware of democracy. But this clown is a Communist so democracy is thrown out the door. I don’t need lectures from you Mr Bogan.

A similar policy was promoted in the past by the Business Council of Australia and also considered by Wayne Swan, as most businesses (especially small businesses) would benefit with only the monopolists, price gougers and mining companies paying super profits taxes.

Capital Retro4:20 pm 29 Aug 24

Hey all you cosseted public servants, this means you can kiss good bye to your superannuation because the shares you have in all the companies that will be taxed will halve in value very quickly.

@Capital Retro
Given that public servants, who don’t have access to the now closed-off defined benefit schemes, are in exactly the same ‘superannuation system’ as any private sector employee, your misdirected slight is totally irrelevant, CR.

Capital Retro9:05 am 30 Aug 24

Most public servants I know vote for the Greens.

It’s nothing to do with the old unfunded defined benefit schemes either.

Before you call my comments misdirected do some research, next time.

“Most public servants I know vote for the Greens.”

“Before you call my comments misdirected do some research, next time.”

Should we poll “people CR may know” to find out their voting patterns?

@Capital Retro
What in heaven’s name are you on about, CR?

Not that it will ever happen – but if shares of companies, in which super schemes invest, are halved, it will impact all super investments, not only those of public servants … including super assets of retirees such as yourself.

No need to research a comment that is clearly moronically misguided.

That’s odd. I don’t know anyone who votes Greens.

Capital Retro11:12 am 30 Aug 24

You just can’t help yourself can you, chewy?

Capital Retro11:16 am 30 Aug 24

It won’t bother me because I don’t have any shares in my super. Why takes risks on shares when 5% pa is available?

Is that being “moronically misguided”?

@Capital Retro
Over the last 10 years, my super had a realised return averaging 8%pa – slightly above in the just ended FY.

So I am not sure what point your 5% pa is making but you enjoy that

Capital Retro12:40 pm 30 Aug 24

Ask me that again when the share market crashes, JS.

Superannuation is about conserving capital, not letting someone else gamble it on the stock market and “unlisted assets”.

@Capital Retro
You mean market crashes like the GFC? Ummm – no despite the dip, the market recovered and so did my super. Oh you mst be referring to the crash during COVID? Gee – the market recovered, and my super, after that too.

So exactly what crash are you predicting, Chicken Little … ooops sorry, I meant CR?

These are true Labor values!

Labor parliamentarians and our Katy especially have been very silent since winning government in advocating for Labor values or representing those who supported and put them into government in the first place!

GrumpyGrandpa12:27 pm 29 Aug 24

Please do NOT vote Greens and do NOT give a Green candidate preference ahead of other candidates.
Mr Brandt has shown that as a party, they are prepared to attack our biggest companies, such as CBA, (who paid over $4Billion of domestic taxes last year) etc, and socialise their earnings for his own political gains.

The greens entire campaign strategy is to lure stupid people with the promise of free* stuff.

*It’s not actually free. You pay for it with additional taxes and price increases, but not increased earnings.

GrumpyGrandpa7:48 pm 29 Aug 24

Ken M,
I think you underestimate the Greens. They are no longer a party focused on climate. Other mainstream parties have adopted more climate friendly policies.
The Greens are now a wedge party. They look for segments of the community they can leverage. Anyone left behind financially, socially, racially, anyone who is rents. They then

GrumpyGrandpa8:13 pm 29 Aug 24

The Greens target sections of the community that are vulnerable. Young people who aren’t financial, renters, the unemployed, the socially distanced, those of non-anglised heritage or religious views etc. They been consistently arguing to lower the voting age to 16, because the youth are due to their stage in life can be influenced.
It’s pretty easy for someone who is vulnerable to accept their circumstances is a result of colonialism, the establishment, white male politicians, etc

And at a very simplistic level, the Greens are telling them what they want to hear. They also bang on about the planet, because fear is an emotional response.

And yes, all of their promises come at the expense of taxpayers, corporations, landlords etc. Someone else’s money can solve their problems, even if it destroys the economy.

It’s wedge politics. The Greens don’t to be in government. They want to hold the balance of power, so they can hold the government of the day to ransom.

Of course Ken M, I’ve said nothing here that you don’t already know.

Yeah, that’s definitely the case Grumpy. It’s why I have called them the watermelon party for a long time now. A thin green facade and pinkos all the way to the core. They have spent their entire time as a party fostering tall poppy syndrome.

Were they ever concerned about the environment? They’re not called watermelons for no reason: the green is only skin deep, but many us know their true colour inside

What biology is to SJWs, books on economics are to the Greens.
Evidence exists for not having to learn everything the hard way

If you vote for these communists, you deserve the economic destruction they cause. Business won’t and can’t just wear 500 odd billion dollars in additional expense. It will be passed onto you. Enjoy standing in line for 4 hours, with a wheelbarrow full of cash to buy bread. That’s where the greens idea ends, every time.

Max_Rockatansky10:27 am 29 Aug 24

Greens Senator Steele-John said on July 1st, graffiti of war memorials in Canberra by Palestinian supporters “is a form of speech”. The 11 Greens in the Senate then failed to support the motion condemning these desecrations. Greens have failed our veterans. Shame on them, they deserve zero votes in every election from now on.

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