Internal Labor push to tax the ‘rich’

AUSTRALIA’S highest income earners would be forced to pay a minimum rate of tax under a policy proposal being pushed within the Labor Party.

Bill Shorten with Senator Malarndirri McCarthy. Picture: Dan Peled/AAP

AUSTRALIA’S highest income earners would be forced to pay a minimum rate of tax under a policy proposal being pushed within the Labor Party to counter populist parties and shore up the country’s coffers.

Opposition Leader Bill Shorten could go to the next federal election promising to tax the biggest earners at least 35 per cent under a so-called “Buffett rule” if the idea from within the Labor Left wins support from the party.

“This is a common sense principle. It deserves public debate,” Labor Left national secretary and NSW upper house MP John Graham told Fairfax Media on Wednesday.

The idea is likely to meet with resistance from the Labor Right, whose leaders include Bill Shorten and Chris Bowen.

Mr Bowen says Labor’s focus is on cracking down on tax concessions favouring high-income earners in the existing tax system.

Warren Buffet. Picture: Thomas Lohnes/AFP/DDP

“We have already rolled out policies on superannuation, negative gearing and capital gains tax that ensure our tax concessions are fairer and sustainable,” he said.

The consideration of a ‘Buffett rule’, named after American businessman Warren Buffett and aimed at making high income earners pay a minimum rate of tax, is already part of national Labor policy.

But the Labor Left has reportedly asked the party’s upcoming national policy forum to consider pursuing the Buffett rule as a priority before a likely debate at national conference next year.

“Labor and the labour movement have to take serious policy positions that even two years ago would have been outside the political orthodoxy and previously unthinkable,” union leader and Labor national executive member Tim Ayres said. “Without some new policies in response to what is going on people in the suburbs and regions will give up on progressive politics in favour of the far right.”