Greens Suggest Implementing $500 Billion Tax on Large Corporations
It comes as major retailers post profit losses.
Greens leader Adam Bandt is proposing a plan to ease Australia’s cost of living by increasing taxes on corporations to the tune of more than $500 billion (US$339 billion).
Under the proposal, some companies could be taxed 40 percent on excess profits.
Dubbed the “Robin Hood tax,” Bandt is set to unveil the plan at the National Press Club on Aug. 28.
“Big corporations across the economy have squeezed hundreds of billions of dollars out of the public since the end of the pandemic—too much of it tax-free,” Bandt will say. “Enough is enough.”
The Greens’ plan, is similar to previous proposals but with an updated list of targeted corporations.
On Aug. 28, Bandt posted a graphic to Facebook naming Coles, Woolworths, NAB, and the Commonwealth Bank among corporations he said needed to “pay up” so “everyone can get by.”
Electronics and entertainment giant JB Hi-Fi could also be in the Greens leader’s firing line.
Key elements of the proposal include extracting $296 billion over 10 years through taxing excess profits by 40 percent once a company has made a surplus of $100 million.
Mining projects, aside from lithium or nickel mining, would also incur a 40 percent “super profits” tax.
The Greens also propose raising $111 billion by forcing offshore gas and oil companies to pay royalties, ensuring they contribute more to public funds than under the current system.
Overall, the Greens aim to collect more than $500 billion from big businesses and will rely on bargaining with a minority Labor government to bring in the changes if Prime Minister Anthony Albanese is re-elected next year.
“It will provide huge amounts of much-needed funding to redirect to everyday people and it will reduce the cost of living,” Bandt will say.
Bandt’s reliance upon cash flow from big companies comes as Woolworths posted a net profit of $1.16 billion, down 21.8 percent from the last financial year.
JB Hi-Fi also slipped, recently reporting net profits fell 20 percent to $264.3 million.
Businesses have not been immune to the sluggish economy. Earlier this month, the Retail Association of Australia welcomed a hold on interest rates by the Reserve Bank of Australia.
According to a June statement from the industry body, business stagnation is driven by consumer demand for cheaper products, which retailers could not afford to provide, leading to reduced inventory and a knock-on effect for suppliers.
“Policy makers need to consider the contribution of retail owners to the Australian economy and help create business environments that nurture investment and growth,” said National Retail Association Interim CEO Lindsay Carroll said.
