Taking on the vested interests to fund the future

Greens plan for paying for infrastructure without privatisation or unsustainable debt.

INFRASTRUCTURE INVESTMENT INCLUDE

  • Schools, TAFE colleges and hospitals $4.5 billion
  • Social (including public) and affordable housing $4.5 billion
  • Public transport (new projects, not yet announced) $1.75 billion
  • Renewable energy package (already announced ) $2.75 billion
  • Large scale solar and other renewables $2.25 billion
  • Sports and recreation $1.5 billion
  • Other social infrastructure, focused on jobs creation $2.75 billion
  • Total: $20.0 billion

The Greens today announced revenue measures that would fund the repayment of $20 billion of investment in new public transport, schools, hospitals, housing and other social infrastructure, without privatisation or running up unsustainable debt.

The Greens propose to restore taxation measures worth $950 million a year on property speculators and poker machines in the large clubs that were introduced by former Labor Premier Bob Carr in 2004 and then axed by his successor, Morris Iemma, in 2006.

Together with $400 million a year from maintaining the stamp duties on business transactions (the "IGA taxes") that were scheduled to be abolished, a loan of $20 billion can be paid back over a twenty year period, using conservative estimates of interest rates.

The vendor duty would not apply to the family home or farm and would help prevent first home buyers being priced out by another housing bubble.

Rescinding Morris Iemma's tax cut for the most profitable clubs would reduce the money available to them to expand and further concentrate poker machines in areas with high incidences of problem gambling.

Tacking back the tax cuts

  • Reinstate the Vendor Duty. This would apply to the sale of all land other than owner-occupied homes and family farms, where the value since purchase has increased by more than 12 percent. The duty was designed to address the combination of capital gains and negative gearing tax concessions introduced by the Howard Government.
  • Revenue: $645 million averaged over four year forward estimates
  • Restore marginal poker machine tax rates at clubs with profits of more than $1 million a year to the level set by Labor in 2004 (a sliding marginal scale from 25 percent on $1 million to $5 million of profits to 40 percent on profits over $10 million).
  • Revenue: $310 million per annum averaged over four year forward estimates
  • Maintain the stamp duties on certain business transactions (the "IGA" taxes) which are scheduled to be abolished in July 2016. These include stamp duty on business mortgages, unlisted marketable securities and transfer duty on non-real business transfers. The duties are forecast to raise $381 million in 2016/17 and $403 million in 2017/18.
  • Revenue: $400 million per annum averaged over four year forward estimates
  • Total revenue: $1.355 billion per annum

Borrowings

  • $20 billion at 3.25 percent, paid back over 20 years at $1.35 billion a year. The rate is deliberately conservative, compared to the current 10-year Waratah bond rate of 2.75 percent which would require annual repayments of $1.3 billion. Phased borrowing over the 20 year period would increase the total amount of capital that can be sustainably raised.

Read The Full Plan

AttachmentSize
PDF icon Backgrounder_ECONOMY.pdf185.84 KB