The Greens have today announced they will push for a new 40% corporate super-profits tax on the excess profits made by big corporations, including mining corporations, in the balance of power after the next election.
The Greens' push for a 'tycoon tax' follows the announcement this week of record super-profits across retail and mining sectors, and National Account figures showing the profit share of national income at the highest (30.3%) since records began, eclipsing last year's new record1.
These new taxes are essential because there's huge wealth in this country, but it's being hoarded by billionaires and offshore shareholders. It's time to make them pay their fair share.
On current polling, a power-sharing Parliament is the most likely outcome of the coming election and in the balance of power, the Greens will push for billionaires and big corporations to pay their fair share of tax to get dental and mental health fully into Medicare and build affordable housing.
The Greens' Plan to tax the tycoons includes:
- A new Corporate Super-Profits Tax, being a 40% tax on big corporations, including mining corporations, that would raise $338 billion over the decade.
- The previously-announced new 6% tax on the wealth of billionaires to raise $48 billion over the decade (more details here)
- Winding back handouts and subsidies to coal, gas and oil corporations, details of which will be announced at a later date.
These policies have been costed by the Parliament Budget Office, they're hugely popular and build on the Greens' recent electoral success in Queensland.
How the Greens' new super-profits tax will work
The 40% Corporate Super-Profits Tax announced today involves two components - one tax that applies to the mining sector and another that applies to corporations more broadly - both of which have been separately costed by the PBO and together raise $338b over a decade. The 40% tax would be applied as follows:
For non-mining corporations with over a $100 million turnover, the tax would apply to their super-profits. Both Australian corporations and the share of a multinational corporation's operations in Australia would be subject to the tax. The corporate super profits tax would apply to net revenue after deducting income tax and after making an allowance for a fair return to shareholders.2
For mining projects, the tax on corporations will be assessed on a Australian project-by-project basis, based on the original Henry Review's mining super profits tax.
