A report commissioned by GetUp has found that Australia could generate up to $2.5 billion in revenue by limiting tax loopholes through using an Australian version of the ‘Buffet Rule.’
According to the Australia Taxation Office, 75 Australians who earned significantly over $1 million in a year paid virtually no tax, and each spent huge sums on tax avoidance schemes.
The Buffett Rule sets a minimum average rate of tax (approximately 35 per cent) for very high income earners which would limit exploitation of tax loopholes and deductions.
GetUp Budget Campaign Director Mark Connelly says the Australian Government should not be solely focused on cracking down on large companies and their exploitative methods of the Australian tax system.
“Labor and Liberal alike are talking about cracking down on tax loopholes exploited by the most profitable companies,” he said.
“They need to do the same for the wealthiest one per cent, who aren’t paying their fair share.”
The policy would see the wealthiest one per cent (those making $300,000 or more per year) pay a minimum 35 per cent tax on their income, about what middle-income earners pay.
It would only apply to those who used tax avoidance measures to lower their tax rate below that threshold.
“Fixing the budget’s revenue problem is a brighter way to get Australia’s budget challenges under control than harsh austerity cuts to pensions, health and education.”