Could a tax on big corporate profits solve Australia’s housing crisis?

The construction union commissioned an independent report from Oxford Economics Australia to model the viability of a tax on excess profits and its capacity to fund social and affordable projects, noting that Australia currently has a gap of 750,700 social and affordable dwellings.

Closing that gap by 2041 would reportedly cost upwards of $500 billion, an amount the CMFEU stated would “comfortably” be covered by what they called a “super profits tax”.

Kicking off the End the Housing Crisis, Tax Super Profits campaign on 25 July, CFMEU’s national secretary Zach Smith believes “the enormous scale of Australia’s housing crisis demands bold solutions”.

He explained that the number one issue facing the union’s members “is always housing”.

“A super profits tax is the fairest way to raise the billions of dollars needed to guarantee every Australian has the basic right of shelter.”

Mr Smith also noted that the use of such a tax would help to close the housing gap “without discouraging investment or creating distortions in the market”.

“By taking back just a slice of exorbitant profits gouged from hardworking Australians, we can transform society to benefit all,” he continued.

He also pointed out that plan would not affect 99.7 per cent of Aussie businesses, noting “the tax only kicks in when corporations make astronomical profits”.

“The federal government has the opportunity to define its legacy as ending homelessness, boosting productivity and lifting millions out of poverty.

“Let’s be the generation that didn’t let this crisis become the norm. Tax super profits, fix the housing crisis,” the national secretary concluded.