ACOSS, Oxfam Australia, among 50 community organisations demanding 25pc gas tax and CGT reform
Key welfare groups are calling on the Albanese government to make major changes to the tax system, including establishing a 25 per cent gas tax, to help Australians struggling with the cost of living crisis.
The Australian Council of Social Service and Oxfam Australia are two of 50 community organisations demanding the new gas tax, as well as scrapping of the capital gains tax (CGT) discount and the phasing out of diesel fuel rebates for mining companies.
“Australia has the capacity to raise additional revenue in fair and sustainable ways to support this investment,” the group said in an open letter.
“We highlight three practical and targeted steps the government could take.
“First, introduce a 25 per cent levy on exported gas. The levy would ensure people in Australia receive a fairer return from our natural resources.
“Such a measure could raise $17bn in revenue each year, while potentially reducing gas prices for households.
“Second, curb the capital gains tax discount and negative gearing. This tax reform would generate $20bn over the first four years, and significantly more in the long-term, while easing pressure on the housing market.
“Third, phase out the diesel fuel rebate for mining companies. This change would generate around $20bn in revenue over the first four years, while improving energy security and reducing climate pollution.”
The group, made up of a number of prominent community organisations, described the changes as “commonsense reforms” that would strengthen Australia’s revenue base while contributing to “greater fairness across our housing, energy and tax systems”.
It said the additional revenue gained from these changes could be redirected to community services, including raising the rate of Jobseeker, Youth Allowance and related income supports to give “people the stability they need to weather rising costs”.
Many of the signatories worked on the frontline with people experience poverty, disadvantage, and marginalisation, or were advocates for those vulnerable.
They said the current economic conditions had created a “worsening situation”.
ACOSS chief executive Cassandra Goldie echoed this sentiment.
“People on the lowest incomes are skipping meals, delaying medical care and rationing energy just to get by,” she said.
“Frontline services are operating at capacity, facing growing demand and increasingly complex needs.
“Current policy settings are not meeting the needs of our communities – it’s clear that significant and sustained public investment is essential.”
Dr Goldie argued the three measures could raise “tens of billions of dollars each year” to support investment in “First Nations self-determination and raising the rate of social security, as well as social and affordable housing, community services, disaster resilience, and renewable energy.”
ACOSS has also outlined these measures in its submission to the federal budget, where it argues Australia must increase funding for income supports and essential services.
Dr Goldie said Australia collected $100bn less per year in public revenue as compared to its OECD counterparts.
“We clearly have the capacity to raise more money and invest it where it’s needed.”
Treasurer Jim Chalmers will hand down the federal budget on Tuesday May 12.
