Greens embark on record $123bn federal election spending spree

THE Greens have embarked on an unprecedented $123 billion election campaign spending spree funded by a string of new taxes that would force up the cost of living.

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THE Greens have embarked on an unprecedented $123 billion election campaign spending spree funded by a string of new taxes that would force up the cost of living.

Greens leader Richard Di Natale yesterday revealed the true cost of the minor party’s campaign cash splash, which would see billions spent on bike paths and rent subsidies, and on cutting university fees. He said this would be “fully offset” by cutting more than $60 billion in wasteful government spending and by raising $66 billion in “revenue measures”.

Many of the party’s tax proposals — including plans to reintroduce a carbon tax, adding a 20 per cent sugar tax to soft drinks and whacking the big four banks with a mining tax-style levy — could drive up living costs.

Greens leader Richard Di Natale, Melbourne MP Adam Bandt and candidate for Higgins Jason Ball. Picture: AAP Image/Julian Smith

The Greens have no chance of governing in their own right after the July 2 election, but in the event of a hung parliament Senator Di Natale hopes to form a minority government with Labor — which would put pressure on Labor to adopt some of the Greens’ economic policies.

However, shadow assistant treasurer Andrew Leigh said the Greens couldn’t be trusted to “get the number right”. “The Greens simply don’t understand how to manage the nation’s finances and economy,” he said.

But Senator Di Natale defended his party’s high-spending, high-taxing policies, saying the “focus on the spend-o-meter” was a sorry reflection of modern elections and politics.

And he urged voters not to be “fooled into thinking we have to accept that there are some things we just cannot do”.

Addressing the National Press Club, Senator Di Natale said the spending commitments were “completely offset’’ by savings and tax hikes. But he refused to say when the Budget would return to surplus were his policies implemented.

“We can fix the structural problem with the Budget through reinvigorating a progressive taxation system, removing unfair tax breaks, making savings in programs that don’t make sense or do damage — and investing in areas that benefit people, the environment, and the economy,” he said.

Labor has pledged about $20 billion in new spending; the Coalition $10.5 billion.

The Greens’ splurge includes $1 billion on new bike and walking tracks, $10 billion to boost the pension by more than $50 a week, and $3 billion to subsidise home batteries.

It says it will cover costs through measures including permanently increasing taxes on the highest-income earners and introducing a so-called “Buffett Rule” limiting tax deductions for high-income earners and set a minimum tax rate of 35 per cent.

Greens Treasury spokesman Adam Bandt told the Herald Sun yesterday: “Given that the Greens would raise more … than we’d spend, and after seeking advice from economists about how much Australia can sensibly borrow, we are confident that the AAA (credit) rating would be secure.”

He said the Greens would “make life easier for middle- and low-income earners”. “We are removing unfair tax breaks … and redirecting that money to make healthcare, education and housing cheaper for everyday Australians,” he said.

Originally published as Greens embark on record $123bn federal election spending spree