The Australian Council of Trade Unions (ACTU) has unveiled a proposal aimed at enhancing living standards in Australia through significant tax reforms and regulatory changes. The union’s submission, presented to the Albanese government during a three-day economic roundtable, seeks to generate up to $25 billion in revenue. This revenue could be redirected into essential services, including the National Disability Insurance Scheme and healthcare.
The ACTU’s agenda includes restricting negative gearing to a single property and ensuring that millionaires and family trusts pay a minimum tax rate of 25 percent. It also proposes expediting building approvals for various projects, ranging from residential housing to large-scale energy initiatives. These measures are intended to address the pressing issue of housing affordability, particularly for younger Australians struggling to enter the market.
Sally McManus, the national secretary of the ACTU, emphasized that the focus must remain on improving living standards, especially for younger generations who find themselves priced out of an increasingly expensive housing landscape. McManus stated that wages growth has not kept pace with productivity improvements over the past two decades, leading to a disproportionate share of profits benefiting businesses rather than workers.
“One of the reasons that productivity has slowed in Australia is that companies have directed profits into share buybacks, into dividends to shareholders and into bonuses,” she explained. “Working people are very careful about wanting to engage in a discussion about productivity, given what’s happened to them.”
The proposed reforms come shortly after a wave of opposition from the business community regarding a recommendation from the Productivity Commission to lower the corporate tax rate while introducing a cashflow tax. The ACTU’s agenda, in stark contrast, is unlikely to gain traction with corporate leaders or government officials, as it calls for tax increases and an overhaul of existing regulatory frameworks.
Under the ACTU’s framework, existing investors would be protected from these changes for five years, allowing them to adjust to the new regulations. The union aims to strike a balance between ensuring a fair tax system and addressing the urgent need for affordable housing.
As discussions progress, the outcomes of this proposal could have far-reaching implications for the Australian economy and its workforce. The ACTU’s focus on equitable taxation and investment in social services presents a compelling argument for prioritizing the needs of everyday Australians in future economic reforms.
