Greens push to hit Australian rich listers with billionaires tax

The Greens are leading the call to force Australia’s richest people to pay a “billionaires’ tax” that they claim could rake in nearly $25bn in four years.

The Greens want to hit Australian rich-listers like Gina Rinehart, Anthony Pratt, Clive Palmer and Mike Cannon-Brookes with a 10 per cent “billionaires tax”, in a move the minor party says will beef-up the budget bottom line by nearly $25bn a year.

Under the policy, Australia’s about 150 billionaires would be slugged with a 10 per cent tax on their net wealth to pay for the Greens’ key cost-of-living demands including Medicare-subsidised dental, free GP appointments and nationwide 50 cent public transport fares.

In order to ensure billionaires drastically reduce their wealth or move their money offshore, and avoid paying the tax, rich listers would be slapped with a 10 per cent limit on capital flight.

In practice, Ms Rinehart, who is Australia’s richest person, would pay about $4bn under the billionaires tax, while Australia’s wealthiest man and Meriton founder Harry Triguboff would be hit with a $2.6bn tax bill.

While the Parliamentary Budget Office said the plan could boost revenue by $24.8bn in the four years to 2027-28, the sum came with a number of caveats.

Billionaire Gina Rinehart, Hancock Prospecting chairwoman, would be hit with a tax bill of about $4bn under the Greens’ plan. Picture: NewsWire/ Phil Gostelow

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Costings analysis from the independent body said compliance and enforcement measures would cost the ATO about $327.1m in 2024-25 to implement, with the agency also required to establish a National Wealth Register.

It also warned billionaires would likely employ “sophisticated strategies to reduce their wealth tax liability,” and consider legal action which would either delay the collection of revenue, or significantly reduce the amount which could be collected.

“The proposal could also reduce the level of Australian investment undertaken by billionaires, with implications for the level of new capital investment and economic growth,” PBO analysis stated.

“It is unclear whether other investors who are not subject to the tax (eg, institutional investors such as pension funds, sovereign wealth funds, and corporations) would make up for the loss of investment by high-wealth individuals.”

Greens leader Adam Bandt said billionaires needed to “pay their fair share to fund the services people need”.

“In a wealthy country like ours, everyone should be able to afford the basics: a home, food, and world class health and education,” he said.

“Instead, billionaires are making out like bandits while everyone else is being squeezed.

“This election, we have a once in a generation chance. There will be a minority government and the Greens are within reach of winning seats right across the country.”

Greens leader Adam Bandt will announce the party’s billionaires tax policy on Tuesday. Picture: NewsWire/ Martin Ollman

Greens economic justice spokesman Nick McKim said billionaires needed to start giving back, and claimed the cost-of-living crisis was a “political choice”.

“Gina Rinehart should not have $40.6bn while people in this country are sleeping in tents and cars,” he said.

“The major parties will not take on the billionaires or big corporations while they’re on the payroll.

“Only the Greens can hold Labor and Liberals accountable and put people ahead of profit in minority government.”

Originally published as Greens push to hit Australian rich listers with billionaires tax