This week, the party announced it is pushing for a tax which would see a 40 per cent corporate super-profits tax on the excess profits made by big corporations, including mining corporations.
The tax would be served in two parts: for non-mining corporations with over a $100 million turnover, the tax would apply to their super-profits; and for mining projects, tax on corporations will be assessed on a project-by-project basis.
Speaking to ifa, Marshall Brentnall, director of Evalesco Financial Services, said he does not support the proposal.
“While it might be a little unfashionable in the midst of the enormous levels of government intervention as a result of COVID, as a general principle, I prefer to see less government intervention in the economy, and that we all grow when individuals are free to participate in the market using their own initiative and personal drive to create wealth and opportunity,” Mr Brentnall said.
“It is this very approach that has enabled our economy to grow, for living standards to increase as they have and in time it is this very innovation that will deliver better outcomes for the environment and society.
“The Greens’ proposed tycoon tax, a scheme to selectively target individuals or industries that have been successful, doesn’t rest well with me.
“It does not factor in the risk associated with building those businesses or the benefits for stakeholders such as employees, shareholders and the community more broadly through the taxation each stakeholder pays in the form income tax and GST for individuals and company tax and payroll tax for businesses.”
Earlier this week, Greens Treasury spokesperson senator Nick McKim said the fact that many Australian billionaires have doubled their wealth during the pandemic — including Harvey Norman which lifted profits by 75 per cent to a record $841 million — shows that change is needed.
“Rather than proposing a penalty for success approach, the Greens might seek to outline their priorities, the costs associated with them, and how they would raise monies without adding to the tax burden,” Mr Brentnall said.
Mr Brentnall joined the ifa Show podcast earlier this year to discuss ethical investing. Listen to the full podcast here.
Sounds like the voice of the privileged who owns property, investments and has a steady income. The inequality divide has only grown in the last 18 months. But sure – those who have have lost their income during covid and are struggling to pay their bills are “free to participate in the market”.
Tell me you don’t understand basic economics and determinants of successful organisations in modern developed economies without telling me you don’t understand basic economics and determinants of successful organisations in modern developed economies.
another idiotic plan by people with no idea of how the real world operates – but it will be a boon to lawyers and accountants
Company Taxes in Australia are only a tax for Foreign Shareholders. Due to our unique dividend imputation system we are in a privileged environment whereby we can increase company taxes without increasing taxes on Australians. Increasing company taxes is a fast track to lower Personal Tax Rates. I’d rather overseas investors pay taxes instead of Australians! Advocating for lower company tax rates is counterintuitive to what Advisers strive to achieve- A greater after tax return for Australians.