Advancing a Fairer Australia
Is time to reconsider the goodwill we are showing to our fossil fuel sector, and redirect it to lifting more Australians out of poverty? Today's op ed is by Nicky Sloan, CEO of Community Industry Group
As the year draws to a close, I am mindful of the many people who will be doing it tough over the holiday season and the wonderful not-for-profit organisations who will be working hard to support them.
Because, despite being the second wealthiest country on the planet, over 14% of all people in Australia are in poverty and 15.6% of all children in Australia live in poverty. That is 3.7 million Australians who live below the poverty line of $584 per week.
Yes, startlingly, Australia has been revealed as having the second highest median wealth per capita in the world. Australia has a median wealth per adult of AU$413,000. In other words, half the population has more AU$413,000 and half has less. Our wealth is so high due to home ownership levels and a strong housing market – and to our strong superannuation system.
Prepare to be amazed – 1 in 10 Australians is a millionaire in US dollars!
In such a wealthy country, it is therefore unfathomable that such a significant proportion of our population struggle to put a roof over their head and food on the table. And it doesn’t have to be that way. We just need to raise more revenue to fund better income support, and more community services for people who need a little extra support.
Revenue can be raised without further taxing the populace. Just consider that Australia is currently giving away gas for free when energy prices are escalating for Australian citizens. Japanese companies export gas from off the Northern Territory for free. They are paying no royalties, no Petroleum Resource Rent Tax (PRRT). Then they on-sell it to other countries to make money.
One in three big corporations pays $0 tax. Most of them are coal and gas exporters. Off-shore gas companies pay no royalties. In fact, the Australian Government collects more tax from HECS than the Petroleum Resource Rent Tax (PRRT).
We need to review our revenue base to make it fairer. Take, for example, Norway which taxes its fossil fuel industry heavily, and gives its kids free education. By contrast, we subsidise our fossil fuel industry and charge our kids a fortune to go to uni.
So, at this time of peace on earth and goodwill to men, perhaps it's time to reconsider the goodwill we are showing to our fossil fuel sector, and redirect it to lifting more Australians out of poverty.
