Greens propose tax cuts worth $1,000 yearly, funded by resource levies
Australia’s Greens leader David Shoebridge is proposing tax changes that he says would give almost every working Australian about $1,000 a year, with a similar increase for people receiving income support. He plans to present the policy as a way to reduce inequality and ease cost-of-living pressures, and says it could be negotiated with Labor before the next federal election, due by May 2028.
The proposal would raise the tax-free threshold from $18,200 to $26,000 and cost an estimated $22 billion a year. The Greens say they would fund it through a 25 per cent tax on gas exports and a market-linked resource rent tax, aiming to collect $45 billion; the speech does not specify which resources would be covered or how the taxes would interact with state royalties. Shoebridge argues that taxing resource windfalls would offset the extra spending’s inflationary effect, as the Reserve Bank continues to raise interest rates to control inflation.
In short
- Greens propose raising Australia’s tax-free threshold to $26,000.
- The party says most workers and income-support recipients would gain about $1,000 yearly.
- Proposed gas and mining taxes would fund the $22 billion annual cost.
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The case for
Supporters could argue that raising the tax-free threshold would put meaningful money into the hands of workers and people on income support, helping with living costs and reducing inequality. They would say taxing gas exports and resource windfalls is a fair way to fund the relief, particularly when commodity prices generate large profits, and could limit inflationary pressure by withdrawing revenue elsewhere in the economy.
The case against
Critics could argue that a broad tax cut costing $22 billion a year may be poorly targeted, with larger dollar gains going to higher earners and extra spending potentially adding to inflation. They may also question whether the proposed resource taxes can reliably raise $45 billion, given the missing detail on which resources are covered and how the levies would work alongside state royalties, and warn that uncertain or higher taxes could affect investment.
Explained simply
Australia’s federal income tax system sets a tax-free threshold: the amount a person can earn before paying income tax. The Greens are a minor party in federal politics, led by David Shoebridge, while Labor is the governing party; changes to tax law would need support in Parliament.
The proposal centres on raising the threshold and funding the cost through new taxes on gas exports and profits from natural resources. Resource companies already pay taxes and state royalties, so the details of how any new levies would work alongside them would matter.
The debate matters because tax changes affect workers’ take-home pay, government revenue and the cost of living. It also connects to inflation: the Reserve Bank raises interest rates to try to slow price rises, and the proposal’s supporters argue that resource taxes could help balance the extra spending.
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Originally published by Daily Mail as “Bold new push to give Aussies an extra $1,000 per year as Greens unveil shake-up funded by gas and mining giants”.