THE CFMEU is launching a national campaign to urge the federal government to solve Australia’s housing crisis with a super profits tax.
CFMEU commissioned independent research from Oxfords Economics Australia to explore the capacity of a super profits tax to fund Australia’s increasing social and affordable housing gap.
According to the report, the country has a social and affordable housing gap of 750,700 dwellings, which would cost $511 billion to close by 2041.
This includes a gap of 190,900 social dwellings and 559,800 affordable dwellings, with the total gap having grown by 114,000 (18%) since 2014 and expected to grow by another 196,200 (26%) by 2041.
A tax on Australia’s corporate giants could comfortably cover this cost, while leaving 99.7% of business unaffected.
“The enormous scale of Australia’s housing crisis demands bold solutions. When I get around the country speaking to members, the number one issue is always housing,” said Zach Smith, national secretary at CFMEU.
“A super profits tax is the fairest way to raise the billions of dollars needed to guarantee every Australian has the basic right of shelter.”
A super profit tax levied solely on mining projects could fully fund the $93 billion required to close the gap in social housing by 2033 and 12% of the affordable housing gap.
With a super profits tax also estimated to represent about 3% of current government revenue receipts.
Smith is set to launch the End the Housing Crisis, Tax Super Profits campaign at the National Press Club in Canberra this week.
The campaign will include a national advertising campaign, with the union to move a motion at the ALP National Conference in August to change their policy platform.
Oxford Economics Australia has found we can close the yawning housing gap without discouraging investment or creating distortions in the market.
A recent report from the Australian Institute of Health and Welfare, social housing accounts for just 4.1% of all residential households in Australia, with Victoria offering the most limited supply.
“By taking back just a slice of exorbitant profits gouged from hard-working Australians, we can transform society to benefit all. This plan won’t affect 99.7 per cent of businesses because the tax only kicks in when corporations make astronomical profits,” said Smith.
“The federal government has the opportunity to define its legacy as ending homelessness, boosting productivity and lifting millions out of poverty. Let’s be the generation that didn’t let this crisis become the norm. Tax super profits, fix the housing crisis.”
