Think longer term: Look at revenue for the public purse and ditch short-term cuts
Greens release Treasury costings
The Australian Greens today released official Treasury costings obtained under formal arrangements as part of the agreement to form government. The costings show that abolishing a range of fossil fuel subsidies would help to re-balance the budget.
“Billions of dollars could be made available for the public over the next four years if the Gillard government adopted measures proposed by the Greens to raise revenue fairly and reduce distortions in the tax system,” Australian Greens Leader Bob Brown said in Canberra.
“If the Government is determined to achieve a budget surplus arbitrarily in one particular year for political purposes there are better ways of doing so than cutting community and environmental programs,” Senator Brown said. “There should not be job losses or cutbacks in delivering services.”
“The Greens propose measures which, according to official Treasury costings, could provide $9 billion more for the public purse over the forward estimates, largely from the mostly foreign-owned resources sector which is reaping windfall gains not shared across the country – and not adequately taxed under current measures.”
Abolishing the following fossil fuel subsidies would help to re-balance the budget. The Greens’ recommendations to Treasurer Wayne Swan include:
• Removing the fuel tax credit for the mining industry, so they pay the same fuel tax as ordinary customers. Abolishing the 38c per litre discount would mean a further $1.8 billion in 2012-13, and $5.4 billion over the forward estimates;
• Ensuring condensate (a light oil extracted from gas) is taxed fairly would increase revenue $550 million in 2012-13, and $1.9 billion over the forward estimates; and
• Removing the immediate deduction for exploration and prospecting expenditure associated with mining and quarrying, saving $90 million in 2012-13 and around $500 million over the forward estimates.
“These measures would mean there should be no need for public service job losses or cutbacks in delivering services,” Senator Brown said.
“Another measure that would favour those who need a leg-up in an increasingly two speed economy, rather than the already wealthy resources sector, is the Greens’ plan to scrap the tax cuts for big business and replace it with a 5% tax cut for small businesses – the nation’s biggest employer.”
Download:
2011TreasuryCostingReportCondensate.pdf
