In a bold move that has sparked widespread debate, the Greens have unveiled a proposal that could significantly alter the financial landscape for the nation’s wealthiest individuals.
This initiative is not just a statement on wealth disparity but also reportedly a strategic move aimed at bolstering the budget by an estimated $25 billion annually.
The Greens’ proposal envisions a more equitable society by imposing a wealth tax on billionaires. The revenue generated from this would reportedly be channelled into funding key cost-of-living measures that could benefit all Australians.
These include Medicare-subsidised dental care, free GP appointments, and nationwide 50-cent public transport fares. Such measures could alleviate the financial pressures faced by many, particularly those over 50 who are often on fixed incomes or managing healthcare costs.
The plan, which targets the likes of Gina Rinehart, Anthony Pratt, Clive Palmer, and Mike Cannon-Brookes, involves imposing a 10 per cent ‘billionaires tax’ on the net wealth of approximately 150 Australian billionaires.
To prevent the ultra-rich from circumventing this tax by moving their wealth offshore, the Greens have suggested a 10 per cent cap on capital flight. This is a direct attempt to keep the wealth within Australia’s borders and ensure that it contributes to the nation’s economic health.
For example, Gina Rinehart, mining magnate and Australia’s richest person, would be liable for a staggering $4 billion tax bill, while Harry Triguboff, the founder of Meriton, would face a $2.6 billion tax obligation.
The Parliamentary Budget Office (PBO) has acknowledged that this plan could indeed boost revenue by $24.8 billion over four years up to 2027-28. However, this optimistic projection comes with several caveats.
The PBO anticipates that enforcing such a tax would require significant resources, costing the Australian Taxation Office (ATO) around $327.1 million in the 2024-25 financial year alone. Additionally, a National Wealth Register would need to be established to track the assets of the ultra-rich.
There are also concerns that billionaires might employ ‘sophisticated strategies to reduce their wealth tax liability’ or engage in legal battles that could delay or diminish the revenue collected.
‘The proposal could also reduce the level of Australian investment undertaken by billionaires, with implications for the level of new capital investment and economic growth,’ said the PBO.
It remains uncertain whether other investors, such as pension funds or corporations, would compensate for any reduction in investment from high-wealth individuals.
Despite these challenges, Greens leader Adam Bandt is steadfast in his belief that billionaires need to ‘pay their fair share to fund the services people need.’ He argues that ‘in a wealthy country like ours, everyone should be able to afford the basics: a home, food, and world-class health and education.’
Bandt sees the upcoming election as a pivotal opportunity for change, with the potential for a minority government where the Greens could play a crucial role.
Nick McKim, the Greens’ economic justice spokesman, echoed Bandt’s sentiments, emphasising that the cost-of-living crisis is a ‘political choice’ and that it’s time for billionaires to start giving back to the community.
He pointed to the stark contrast between the immense wealth of individuals like Rinehart and the harsh reality of those struggling with homelessness: ‘Gina Rinehart should not have $40.6bn while people in this country are sleeping in tents and cars.’
‘The major parties will not take on the billionaires or big corporations while they’re on the payroll. Only the Greens can hold Labor and Liberals accountable and put people ahead of profit in [a] minority government,’ he continued.
The proposal has ignited a conversation about wealth distribution and the role of taxation in addressing inequality. It raises questions about the responsibilities of the ultra-rich and the government’s duty to ensure a fair and just society for all citizens.
What are your thoughts on this proposal? We invite our readers, especially those over 50 who have seen many tax changes over the years, to share their insights and experiences with the YourLifeChoices community in the comments below.
Also read: Will there be new taxes this year? Here’s Treasurer Jim Chalmers’ response
The wealthy have never paid their fair share of tax due to all the avoidance measures available to them. The tax burden falls on the middle income earners, heaviest on those who work for wages.
Our tax system needs major reform and although I am not sure the Greens proposals are workable they are at least trying to make a start on correcting the imbalance.
Absolute Rubbish.
The Greens and Labor feeding on envy and jealousy as per usual.
Why do they not focus on all the govt waste instead ?
If the Billionaires have a lot, its because at soime stage they have taken huge risks, have had innovative ideas and gone for it.
Cannot expect the middle income earner who wants a safe pay check every week along with a great 2 day weekend to gain similar benefits in life.
That same Billionaire has thousands of people employed & is more responsible for their welfare than the govt.
To say that Billionaires do not pay taxes is rubbish again. Their ventures pay employees, who pay taxes, their Companies that pay taxes & GST along the way.
Instead of being jealous and supporting the wasteful Greens and Labor, why do the people not stop voting for them.
You are so right!
I agree with many of the comments above but based on past experiences when governments try and change the tax system to make it more equitable a recession is not far behind and inevitably the next government changes it back again but the damage it causes is far longer lasting
Another point if these same billionaires
Actually believe that there is some chance that these proposed amendments to the tax system would Actually come into effect I would guarantee that these same billionaires would pack up all their assets and make the move to a tax haven then we would lose far more than we would possibly gain by 100 fold these greens need to think about the economic damage that these proposals would cause it’s not always about perceptions it’s about reality and not just vote catching
I can remember when the top marginal tax rate was 67% and there were the “bottom of the harbour schemes” for the “rich” to “sink their money in” and not pay tax on it. Now they use “Tax Havens” to do the same, and reduce their Tax Liability within Australia.
Just make everyone pay 10% individuals and companies. There would be a lot of accountants out of work, but more money in the coffers.