{"id":12842,"date":"2021-09-06T20:43:38","date_gmt":"2021-09-06T20:43:38","guid":{"rendered":"http:\/\/www.16news.com.au\/?p=12842"},"modified":"2021-09-06T20:43:38","modified_gmt":"2021-09-06T20:43:38","slug":"amid-record-corporate-super-profits-greens-announce-new-tycoon-tax-to-raise-338-billion-for-public-good","status":"publish","type":"post","link":"http:\/\/www.16news.com.au\/index.php\/2021\/09\/06\/amid-record-corporate-super-profits-greens-announce-new-tycoon-tax-to-raise-338-billion-for-public-good\/","title":{"rendered":"Amid record corporate super-profits, Greens announce new Tycoon Tax to raise $338 billion for public good"},"content":{"rendered":"

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.
\nThe Greens\u2019 push for a \u2018tycoon tax\u2019 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\u2019s new record1<\/sup>.
\nThese new taxes are essential because there\u2019s huge wealth in this country, but it\u2019s being hoarded by billionaires and offshore shareholders. It\u2019s time to make them pay their fair share.
\nOn 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.
\nThe Greens\u2019 Plan to tax the tycoons includes:<\/p>\n

    \n
  1. A new Corporate Super-Profits Tax, being a 40% tax on big corporations, including mining corporations, that would raise $338 billion over the decade.<\/li>\n
  2. The previously-announced new 6% tax on the wealth of billionaires to raise $48 billion over the decade (more details here<\/a>)<\/li>\n
  3. Winding back handouts and subsidies to coal, gas and oil corporations, details of which will be announced at a later date.<\/li>\n<\/ol>\n

    These policies have been costed by the Parliament Budget Office, they\u2019re hugely popular and build on the Greens\u2019 recent electoral success in Queensland.<\/p>\n

    How the Greens\u2019 new super-profits tax will work<\/h2>\n

    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:<\/p>\n

      \n
    1. 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\u2019s 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<\/sup><\/li>\n
    2. For mining projects, the tax on corporations will be assessed on a Australian project-by-project basis, based on the original Henry Review\u2019s mining super profits tax.<\/li>\n<\/ol>\n

      The independent Parliamentary Budget Office has calculated the mining component will raise $124 billion over 10 years and the wider component will raise $214 billion over that same period, totalling a $338 billion boost to the fiscal balance. The Greens will announce further details about the super-profits tax on oil and gas corporations at a later date.<\/p>\n

      40% Corporate Super-Profits Tax Policy in application<\/h2>\n

      The following companies are estimated to have the following change in their tax liability based on most recent financial reports.3<\/sup>\u00a0Because mining companies would be assessed on a project-by-project basis, it is not possible to estimate individual corporate liability without greater knowledge of individual corporations\u2019 operations.<\/p>\n\n\n\n\n\n\n\n\n\n
      <\/th>\nProfit<\/strong><\/th>\nCurrent company income tax<\/strong><\/th>\nNew corporate super profits tax<\/strong><\/th>\nTotal tax paid<\/strong><\/th>\n<\/tr>\n
      Telstra<\/strong><\/td>\n$1.9B<\/td>\n$540m<\/td>\n$300m<\/td>\n$840m<\/td>\n<\/tr>\n
      CBA<\/strong><\/td>\n$8.8B<\/td>\n$3.5B<\/td>\n$1.3B<\/td>\n$4.8B<\/td>\n<\/tr>\n
      Apple<\/strong><\/td>\n$1.4B*<\/td>\n$120m<\/td>\n$420m<\/td>\n$540m<\/td>\n<\/tr>\n
      Harvey Norman<\/strong><\/td>\n$840m<\/td>\n$340m<\/td>\n$190m<\/td>\n$530m<\/td>\n<\/tr>\n
      Ramsay<\/strong><\/td>\n$510m<\/td>\n$230m<\/td>\n$70m<\/td>\n$300m<\/td>\n<\/tr>\n
      Wesfarmers<\/strong><\/td>\n$2.4B<\/td>\n$1.0B<\/td>\n$570m<\/td>\n$1.6B<\/td>\n<\/tr>\n<\/thead>\n<\/table>\n

      *Assumes profit attributable to Australian operations is equal to Australian share of turnover.<\/p>\n

      Super-Profits announced this week<\/h2>\n