Greens vow to push for major “super-profit” tax on Australia’s corporate giants

• The Greens vow to push for a “tycoon tax” on big corporations after the next federal election to raise some $338 billion in extra tax revenue over 10 years
• Under the Greens’ proposed plan, a 40 per cent corporate “super-profits” tax would apply to many of Australia’s biggest corporations
• The push for the tycoon tax follows record profit announcements in the 2021 annual financial reports from many of the countries’ big companies
• The extra tax revenue would be used to help get dental and mental health subsidised by Medicare and to support affordable government housing
• Greens Leader Adam Bandt said by making billionaires and big corporations pay their “fair share”, all Australians will be able to enjoy a better life.

The Greens have vowed to push for a “tycoon tax” for big corporations after the next federal election — a plan that could bump up corporate taxes by some $338 billion.

The plan is reminiscent of a Labor mining tax policy that was passed back in 2012 but was repealed a year later by then-Prime Minister Tony Abbott.

Under the Greens’ proposed plan, a 40 per cent corporate “super-profits” tax would see many of Australia’s biggest countries taxed a heavy amount on excess profits.

The push for the tycoon tax follows record profit announcements in the 2021 annual financial reports from many of Australia’s big corporations — particularly among retail and mining giants.

The Greens said in a statement the latest National Accounts figures show the profit share of national income hit 30.3 per cent — the highest share since records began.

“These new taxes are essential because there’s huge wealth in this country, but it’s being hoarded by billionaires and offshore shareholders,” the statement said.

“It’s time to make them pay their fair share.”

Along with the super-profits corporate tax, which alone would raise $338 billion in 10 years, the Greens’ plan includes a previously announced 6 per cent tax on the wealth of billionaires to raise another $48 billion.

The party then plans to use these extra funds to help get dental and mental health subsidised by Medicare and to support affordable government housing.

How would the Greens’ tax plan work?

Under the proposed plan, there would be different rules for mining companies and non-mining companies.

For non-mining corporations with an annual turnover of more than $100 million, the heavy tax would apply only to their super-profits, though what constitutes a super profit was not defined in today’s media statement from the Greens.

As an example, though, the party said a company like Telstra would pay $300 more in tax under the Greens’ plan; Telstra made $1.9 billion in profit last financial year and paid $540 million in income tax. The proposed new plan would see Telstra pay $840 million on its $1.9 billion profit.

Similarly, Commonwealth Bank made $8.8 billion in profit and paid $3.5 billion in tax. The Greens’ plan would see this tax figure bolstered to $4.8 billion.

As for mining entities, taxes on corporations would be assessed on a project-by-project basis.

Greens Leader Adam Bandt said by making billionaires and big corporations pay their “fair share”, all Australians will be able to enjoy a better life.

“Big corporations making big profits should pay more tax,” Mr Bandt said.

“While everyone else has suffered through the pandemic, billionaire corporations have made out like bandits and profits are at record highs.”

“People want Clive Palmer to send fewer texts and pay more tax.”

The Greens said they would push for the new corporate tax rules “in the balance of power after the next election” — meaning the push would likely be in the event of a hung parliament.

Labor has not openly backed the Greens’ policy.