SA state election: SA Greens propose huge mining, bank and developer taxes for cheap power and free public transport

Almost $7bn of taxes hitting banks, miners and developers would fund a radical agenda as part of an SA Greens election pitch.

Huge taxes would be imposed on property developers, miners and big banks to fund free public transport, slash electricity bills by more than $400 and build 40,000 public homes as part of a radical SA Greens state election platform.

Reversing the “disastrous” privatisation of the state’s electricity network and erosion of public housing by recreating ETSA and the SA Housing Trust is a centrepiece of the agenda to create almost 20,000 jobs annually, unveiled by Greens MLC Robert Simms.

A Greens costing document says $6.9bn would be reaped over four years, through $3.8bn in mining royalties, a $1.3bn bank levy and $1.7bn developers tax.

This would fund a $1bn public transport network upgrade, including free fares, and pump $8.7bn into 7125MW of publicly owned renewable energy and storage.

Mr Simms declared the “bold, ambitious plan to transform SA for the better” would make developers, mining corporations and big banks “pay their fare share of tax”, thus tackling the climate crisis and economic inequality to “create a better life for all South Australians”.

Premier Steven Marshall responded by arguing “now is not the time to risk putting a handbrake on the growing momentum within our great state”.

The Greens’ goal is to win the balance of power in the upper house at the March 19 state election, by securing votes expected to leak from SA Best after Nick Xenophon’s political retirement.

SA MLC Robert Simms, right with Greens upper house candidate Yesha Joshi.

Mr Simms said the Covid-19 pandemic had exposed growing inequality in SA, while the United Nations Intergovernmental Panel on Climate Change report on Monday had demonstrated urgent action was needed because the state would be hard hit.

“Our plan for publicly owned renewable electricity, a record sustainable public housing spend and free public transport is desperately needed,” he said.

“Privatisation has been a disaster for South Australia and resulted in price hikes and cuts to essential services. The Greens’ plan would turn the page on that and really give the community control over our public services.”

The 75 per cent developer tax would apply to land value gains from rezoning, while the five biggest banks would be hit with a levy of 0.05 per cent of total liabilities per quarter. Refined mineral and mineral ore concentrate royalty rates would be hiked from 3.5 per cent and 5 per cent respectively to 20 per cent of the resources’ value, while the petroleum royalty rate would be 25 per cent of the wellhead value of petroleum.

The 1999 sell-off of the state-owned power network for $3.5bn would be unpicked by a $4.5bn compulsory acquisition of the distribution and transmission network.

Private energy retailers, labelled “parasites on our electricity system” by the Greens, would be phased out over two years and billing services taken over by ETSA – similar to the pre-privatisation era.

The reborn Housing Trust would build 10,000 homes per year, creating 10,000 construction jobs, funded by a government bond raising of $16.5bn over four years. Rents would be capped at 25 per cent of income or market rates, whichever was lower.

Mr Marshall said the Liberal government was focused on creating jobs, rolling out a $7.4bn health spend and providing the infrastructure South Australians needed to spend more time doing what they loved and less time stuck in traffic.

Opposition Leader Peter Malinauskas declined to comment.