Greens Propose Tax Reform and Welfare Boost
The party aims to increase the tax-free threshold and tax windfall profits of gas and mining companies.
Updated on Oct. 27, 2026 in Inflation
Live Poll
Should the government tax corporate windfall profits to fund tax cuts for working people?
Greens leader David Shoebridge has proposed a new economic policy to raise the tax-free threshold from $18,200 to $26,000 and provide a $1,000 tax cut for most workers. The plan also includes a $1,000 increase in welfare payments for pensioners, carers, and JobSeeker recipients, funded by a 25 per cent gas export tax.
Why it matters
The policy seeks to mitigate inflationary pressures by targeting corporate windfall profits while simultaneously providing direct financial relief to workers and welfare recipients. Supporters argue this approach addresses cost-of-living challenges during a period of high economic volatility.
The proposed package carries an annual cost of $22 billion. This estimate follows the Parliamentary Budget Office calculation that the measure would add $57.7 billion to the government debt interest bill by the mid-2030s.
The players
David Shoebridge
He is the leader of the Australian Greens who presented the new economic policy at the National Press Club.
Jordan Steele-John
He is a senator currently taking personal leave during an inquiry into allegations of inappropriate comments.
Parliamentary Budget Office
This is an independent body that provides fiscal analysis and budget costings for proposed legislative policies.
Reserve Bank
This is Australia's central bank, which is expected to review official interest rates at its upcoming meeting.
The details
The proposal aims to overhaul resource rent taxes, leveraging the combined windfall profits of gas and mining companies which reach $45 billion. Implementation of these changes is positioned as a direct intervention against corporate drivers of current inflation.
Timeline
2012-13 saw the previous change to the tax-free threshold.
2022 marked the implementation of changes to Queensland coal royalties.
September 2026 was when David Shoebridge became leader of the Greens.
28 October 2026 was the date David Shoebridge presented the policy at the National Press Club.
Mid-2027 is the scheduled time for the government to reduce the bottom tax rate to 14 per cent.
Macro View
The policy extends the precedent set by the Queensland coal royalties changes by targeting the windfall profits of gas and mining companies. This move signals a shift towards utilizing specific resource rent taxes as a primary funding mechanism for national social programmes.
Eligible workers could see their tax burden reduced through the proposed threshold increase and tax cut. However, the policy's long-term reliance on debt to finance these benefits may have future implications for national fiscal stability and interest rates.
The takeaway
The Greens' proposal highlights an ongoing debate over how to balance immediate cost-of-living relief with long-term fiscal responsibility. Readers should monitor upcoming official interest rate decisions as they will interact directly with these proposed fiscal changes.
Further reading
For broader context on current economic trends, see the Inflation section.
Live Poll
Should the government tax corporate windfall profits to fund tax cuts for working people?
