Politics: Greens propose tax change to save Australians $1,000 a year as inflation is expected to rise
Greens outline welfare proposal
David Shoebridge, the Greens leader, is due to speak at the National Press Club in Canberra. He plans to discuss support for Australians facing cost-of-living pressures and answer questions about allegations against senator Jordon Steele-John.
The Greens propose a $1,000 yearly increase for people on income support, including pensioners, carers, students and job seekers. Shoebridge also said people in different circumstances, including workers and students, would receive more than $1,000, while the proposal is described elsewhere as a $1,000 annual boost.
Proposed funding and cost
Parliamentary Budget Office costings put the plan at about $22bn a year. Shoebridge proposes paying for it with higher taxes on gas exports and a market-based tax on resources companies.
The proposed increase is part of a broader package that includes raising the tax-free threshold. The available details do not specify the size of that threshold change.
Inflation data due today
Official figures scheduled for release at 11:30am are expected to show inflation rising to 4.2% in the year to September, from 4% in the previous month. Higher fuel costs amid a worsening Middle East conflict are adding to cost-of-living pressures.
Recent comments from senior Reserve Bank officials suggest concern that high inflation could become entrenched, even as unemployment rises. The figures may increase the chance of an interest-rate rise on Melbourne Cup day next week, and the opposition is expected to use them to criticise Labor’s economic management.
Key points
- The Greens propose a $1,000 annual income-support boost, funded by higher taxes on gas exports and resources companies.
- The Parliamentary Budget Office estimates the proposal would cost about $22bn a year.
- September annual inflation is expected to reach 4.2%, up from 4% the month before.
- The inflation release may increase the likelihood of an interest-rate rise next week.