Marriage equality plebiscite could cost Australia more than half a billion dollars: data

HOLDING a plebiscite on the issue of marriage equality could cost the Australian economy upwards of half a billion dollars, according to new data.

Equality rally supporting same sex marriage at the State Library. Codine and rhonda. Picture: Brendan Francis

HOLDING a plebiscite to resolve the issue of marriage equality could cost the Australian economy upwards of half a billion dollars, according to new economic modelling to be released today.

Financial advisory firm PwC has estimated a compulsory plebiscite, that is not held on the same day as the next federal election, would be an expensive $525 million whack to the economy.

The new cost estimate, roughly three times higher than figures commonly cited by advocates of a plebiscite, has sparked fresh calls for the costly mechanism to be dumped in favour of a free vote in the federal parliament.

Australian Marriage Equality national director Rodney Croome is calling on every government minister to read the PwC report before federal cabinet makes a decision on the plebiscite.

“The more information we get about the plebiscite, the clearer it becomes that it’s just an incredibly costly and harmful opinion poll,” Mr Croome said.

“The plebiscite legislation will become a minefield of unexpected costs, unintended consequences and complications about timing and public funding,” he said.

Same-sex marriage supporters ... advocate Rodney Croome and Hobart Lord Mayor Sue Hickey with the rainbow flag at Town Hall. Picture: Kim Eiszele

It is understood the government could finalise the details of the marriage equality plebiscite as early as this week, clearing the way for the Prime Minister Malcolm Turnbull to call a winter election.

According to the PwC modelling, a stand alone plebiscite with compulsory voting would likely require $158 million in direct taxpayer contributions.

Another $281 million would be forfeited in lost productivity, $66 million in community funding would be ploughed into the ‘for’ and ‘against’ campaigns, and at least $20 million in costs associated with the mental health impact of a divisive community debate on gay marriage would be incurred.

The sizeable $525 million price tag of a stand-alone plebiscite dwarfs the $17 million PwC estimate would have to be spent if there was a free parliamentary vote on allowing gay marriage.

PwC Chief Economist Jeremy Thorpe said a plebiscite was “certainly the most costly way to resolve marriage equality”.

Equality rally ... Australians march in the streets for same-sex marriage rights. Picture: Brendan Francis

Mr Thorpe said overseas examples showed spending on the “for” and “against” campaigns could topple more than $6 per voter alone, as happened in California.

“That’s a huge waste of money that could be better allocated in our low-growth economy,” he said.

PwC partner Suzi Russell-Gilford said arguments in the media opposing marriage equality would also be “devastating for a segment of the community already more susceptible to mental health issues as a result of discrimination.”

Ms Russell-Gilford said the modelling would bring another perspective to the fraught debate.

“It is obviously an issue that is fraught with emotion but what we are looking at here is the facts and the figures,” she said.