Labor national conference: Tax, super to dominate Jim Chalmers’ economy discussion

Treasurer Jim Chalmers has told 2000 Labor delegates the party is “working for the future” as internal disputes failed to materialise onto the floor.

Treasurer Jim Chalmers has told Labor’s highest decision-making forum that the party “can own the future”, as unions and the party’s left faction called for urgent reform of the country’s tax system.

While there was broad expectation of a fight over stage three tax cuts, the discussions were instead dominated by harmonious talks on superannuation, trade, and manufacturing, and a call to tax huge companies more in order to fund housing.

Dr Chalmers led the first session of the day, telling the more than 2000 delegates about Labor’s goal to have an economy that “works for everyone”, headed by a government that is working to help Australians through “a difficult time for many”.

He said because of that, the government’s highest priority was “rolling out billions of dollars in cost-of-living help”, and giving a call to arms about Labor “working for Australia”.

His rally cry did not mention housing, despite Prime Minister Anthony Albanese a day earlier announcing a suite of housing reforms after a national cabinet meeting - including a $3bn sweetener to incentivise states and territories to build more houses.

Treasurer Jim Chalmers’ goal is to have ‘an economy that works for everyone’. Picture: NCA NewsWire/Tertius Pickard

On Thursday, Labor’s left delegates were set to argue for a 40 per cent tariff on Australia’s top earning companies to build 750,000 social and affordable homes by 2041.

The CFMEU, backed by Labor for Housing, welcomed the packages announced, but moved an amendment to go further, calling for Labor to adopt a “critical first step” to revise corporate tax laws, and make companies making super profits pay for more housing.

CFMEU national secretary, Zach Smith - who had earlier led a rally outside the conference’s venue to call for a super profits tax - applauded the Labor government for striking the “historic deal”, but said more needed to be done.

But the amendments Mr Smith moved during the debate somewhat watered down the union’s demands, calling for the party simply to “increase government investment in social and affordable housing with funding from a progressive and sustainable tax system, including corporate tax reform”, without making specific reference to a super profits tax.

Dr Chalmers says the Labor Party is working for the country.

In moving the amendments – which were accepted by the voting delegates, he said the gap in affordable housing would rise to nearly one million in the next two decades, and half a trillion dollars was needed over the next two decades to build those homes.

“We know that a permanent solution to a problem this big, requires us to be more bold. And the truth is that money exists to fix this problem,” he said.

“Australia is one of the wealthiest societies on Earth, but it doesn’t always feel like it … That is because Australia’s wealth is not in the pockets of ordinary Australians, it is concentrated in the balance sheets of an elite cabal of companies.

“We believe a super profits tax is the clearest way to raise the money necessary to build the homes we need.”

While the amendment he moved did not contain mention of such a scheme, Mr Smith said it was a “very significant first step” that the government should be taking.

Mr Albanese had earlier used his keynote address to confirm the government’s Help to Buy scheme would be operational from next year.

During his speech to delegates, Dr Chalmers said the government was committed to helping Australians by rolling out cost-of-living packages and had worked to improve the economic circumstances.

“Now, partly as a consequence of our responsible, methodical, economic management, inflation is moderating, wages are moving again, and we are condemning to history the false choices which drove the economic failures of the Liberals and Nationals who pretend that somehow Australia has to choose between making our economy stronger or our economy fairer,” Dr Chalmers said.

“We are Labor because we know that these goals are complementary, not in conflict, and that we can serve our immediate pressures and our generational responsibilities at the same time.

“In this world of change, Labor’s guiding goal is as clear and pressing as ever: to ensure more Australians in more parts of our country are the major beneficiaries of the changes under way in our economy.

“Together we can own the future.”