Labor’s left faction is pushing for a tax on corporate super profits to alleviate the housing crisis, warning inaction could result in Anthony Albanese leading a one-term government.
Delegates will argue for the 40% tariff on Australia’s top-earning companies to build 750,000 social and affordable homes by 2041 at the party’s national conference, beginning on Thursday.
The federal government faces a stalemate in the Senate over its signature housing policy to build 30,000 social and affordable homes in the next five years, which has been opposed by the Greens.
The prime minister will meet state and territory leaders at national cabinet in Brisbane on Wednesday to discuss solutions to the tight rental market and housing supply.
The CFMEU mining and construction union has argued for the tax rate be raised to 40% for corporations earning more than $100m in annual turnover.
The union’s national secretary, Zach Smith, said modelling by Oxford Economics Australia indicated more than $500bn could be raised from the tax to build 750,000 homes over the next two decades.
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Another conference delegate, Labor for Housing convener Julijana Todorovic, said ambitious tax reform was needed to stem the rise of intergenerational inequality.
Todorovic, an assistant secretary of Victoria’s socialist left faction, said she had held positive discussions with other delegates.
“We think that [the federal government is] acknowledging that this is the No 1 issue for many people across the country,” Todorovic said.
“I think that they’re waking up to the fact that if we don’t do something strong and meaningful on housing, this issue will become … to us as [climate change] was to the Liberal party last election.”
Smith said voters would be looking at news headlines, such as the Commonwealth Bank’s recent posting of record profits, and expecting the government to do something about it.
“People know something’s wrong. They know something’s wrong in their society when we have Commonwealth Bank recording over $10bn in profit while ordinary Australians are struggling to put a roof over their head,” he said.
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“I think attitudes around corporate taxation have changed and people are looking for governments to be bold.
“I think a bigger political risk for the Labor government is inaction and failure to really sort of tackle the big issues.”
The policy is similar to the Greens’ “tycoon tax”, which would target Australian and multinational companies earning more than $100m each year.
The minor party believes increasing the tax rate to 40% for corporate, mining and gas giants could raise $430bn over the next decade.
The Greens spokesperson for housing, Max Chandler-Mather, said a super profits tax could generate billions of dollars for “the services that Australia needs, like public schools, dental into medicare and welfare above the poverty line”.
Teal MPs, who represent some of the wealthiest electorates in the country, all support reforms to reduce the share of revenue from personal income tax.
While most are favour of tightening the petroleum resource rent tax, the Warringah MP Zali Steggall backed taking more from high-yielding companies and using it to improve housing affordability and climate mitigation.
“A super profit tax could plug such loopholes, preventing multinationals from exploiting the Australian public,” Steggall said.
“In these challenging economic times with rising costs and inflation hitting average Australians and small businesses hard, the Labor government’s stance becomes critical: does it favour big business or the Australian people?”