The Greens said this week that the proposed plan would raise $338 billion over the decade and would wind back handouts and subsidies to coal, gas and oil 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.
The move comes after the announcement this week that record super-profits were made in the retail and mining sectors, including Harvey Norman which lifted profits by 75 per cent to a record $841 million.
Meanwhile, the country’s three biggest miners recorded $65.5 billion profit.
“Big corporations making big profits should pay more tax,” Greens leader Adam Bandt said.
“While everyone else has suffered through the pandemic, billionaire corporations have made out like bandits and profits are at record highs.
“A ‘tycoon tax’ is essential because there’s huge wealth in this country, but it’s being hoarded by a greedy few.
“People want Clive Palmer to send fewer texts and pay more tax.
“By making mining billionaires and big corporations pay their fair share, we can build a better life for all of us.”
Greens Treasury spokesperson senator Nick McKim said the fact that many Australian billionaires have doubled their wealth during the pandemic shows that change is needed.
“Outrageous profits for corporations shows the way that big players have furthered their monopolies through COVID lockdowns,” Mr McKim said.
“Excessive profits are a red flag for an economy. Super-profits are a sign that there is a lack of competitiveness, that staff are not sharing in the spoils of increased revenue and that customers are getting ripped off.”
Adam, thankyou for putting this policy forward. Rgds, Scomo
So they basically want communism. Watch all the companies leave Australia if there are excessive taxes, then you’ll be collecting 100% of nothing.
Lol! So Communism for politicians mates is okay? Privatising the profits from public assets is NOT Capitalism; it is a very clear practical demonstration of crony capitalism – aka communism for cronies/mates.
Secondly, if companies are conducting profitable businesses in Australia, why would they leave? They cannot mine Australian dirt in another country nor build appartments overseas for Australians to live in, nor sell trinkets to me in China, for me to use in Australia; they have to do that here (mine dirt here, build here or deliver trinkets here) and be captured by our tax regime. That is if we close off loopholes like transfer pricing, parent company foreign lending and other such profit shifting mechanisms.
Thirdly, in Australia we have something called dividend imputation. So every dollar of company tax paid is completely refundable to individual tax payers- the ultimate owners of Australian Companies. The only beneficiaries of lower tax rates are foreign owners of Australian Companies whom do not get to have their imputation credits refunded. No Australian should be worse off with higher company tax rates! So why then do other supposedly astute Financial Planners still shrill for lower company tax rates? [i]Lower company taxes are a subsidy for overseas investors, at the expense of Australians.[/i] Lower company taxes means ‘everyday Australians’ will have to pay higher taxes for the benefit of overseas investors. Sure, campaign for lower PERSONAL tax rates … but lower company tax rates will only result in higher personal tax rates for Australians!
Spot on – kind of. The reason countries like Ireland were willing to have lower company tax rates was to attract overseas companies to set up shop to make things. That was the only way they could create employment.
While Australia has pretty low unemployment rates, there does need to be a move back to more manufacturing so we aren’t as reliant on places like China. For this, it may be necessary to attract capital from overseas investors/companies.
In my opinion this is completely different to the companies that sell us stuff and dig up our dirt.
I don’t think the Greens coalition partners the ALP will be that happy with this policy. They are still suffering from PTSD after the Rudd/Gillard mining tax debacle. Next years general election should be fun to watch.
“Big corporations making big profits should pay more tax,” – They do. They pay more tax on literally every extra dollar they earn.
That’s all just too hard for a greenie to comprehend…