The Greens have one seat in the House of Commons and nine in the Senate. Labor leader Anthony Albanese has ruled out power sharing with the Greens.
Despite years of pressure from the business world, neither side of politics has promised major corporate tax reform, but has focused on programs like immediate asset write-offs and research and development initiatives.
The corporate income tax rate for companies with sales less than $ 50 million is now 25 percent and 30 percent for all other companies. The big banks pay a special levy that brings in about $ 1.6 billion annually.
A 40 percent super profit tax on the extractive sector was an important part of Henry’s 2010 tax reform paper, but it contributed to the overthrow of Kevin Rudd as prime minister before a watered-down version was introduced. This tax ultimately resulted in little additional revenue and was eliminated by the Abbott government.
According to the Greens proposal, the original super-profit tax for the minerals sector should be reintroduced. The Budget Bureau estimates it will raise $ 119 billion in a decade, starting with $ 8.6 billion in 2022-23.
But the Greens have gone further and support a similarly structured super profit tax for all companies. The 40 percent rate would apply to profits in excess of 5 percent plus the interest rate on long-term bonds, with companies eligible for an effective refund of all taxes paid on the first $ 100 million in sales.
That tax would raise $ 17.3 billion in its first full year of operation and $ 288 billion in a decade, according to the Budget Bureau. Once the income tax cuts were offset against that tax, the total cost would be $ 217 billion over 10 years.
When calculating the taxes to be paid, the Budget Office reduced the total tax on super profits by 20 percent in order to take into account “estimated behavioral reactions by companies to reduce their tax liability”.
She also warned that general corporate income tax on super profits could fluctuate significantly, especially since different industries are likely to have very different levels of profitability.