The top construction union boss says more than half a trillion dollars is needed to meet Australia's demand for social and affordable housing, and the only way to raise the funds is to introduce a "circuit-breaker" tax.
Key points:
- The national construction union launched a campaign calling for the taxing of large national corporate profits
- CFMEU boss Zach Smith announced the plan at the National Press Club today
- The union hopes the taxes will raise billions that can be put towards public and affordable housing
The Construction, Forestry, Maritime, Mining And Energy Union (CFMEU) today launched a nationwide campaign to encourage the federal government to introduce a tax on super profits, which it argues could end the housing crisis.
The union's national secretary Zach Smith used a speech at the National Press Club to demand a "bold solution" to fix the national housing shortage.
"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," he said.
"By taking back just a slice of exorbitant profits gouged from hard-working Australians, we can transform society to benefit all."
Under the idea, a tax would be applied to the excess earnings of national corporate giants.
The union claims the plan would only affect a small percentage of Australian businesses, with the tax only kicking 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," Mr Smith said.
"The tax we propose can only sting you if you're already lucky enough to be making super profits.
"For 99.7 per cent of Australian businesses, this will never be an issue.
"Let's be the generation that didn't let this crisis become the norm."
Union-commissioned report finds 750,000 homes needed
A report from Oxford Economics Australia, commissioned by the union, suggests Australia needs more than 750,000 new dwellings to meet demand right now, with that number expected to grow to almost 1 million by 2041.
The analysis details $511 billion is needed to close the housing gap, a figure based on 52,600 homes being built every year between now and 2041.
"An economy-wide super profits tax could fund the $28 billion per annum required to 'close the housing gap' in social and affordable housing by 2041," the report said.
"A permanent well-designed general excess profit tax is efficient and does not discourage investment."
It argues the federal government's centrepiece housing policy, the Housing Australia Future Fund, falls "well shy" of what is required.
The key election commitment will return to parliament in October after the Greens and Coalition joined forces to delay a vote on the $10 billion fund.
The union's campaign will include advertising in every state and territory.
It will also move a motion at Labor's National Conference in August to attempt to change the party's policy platform.
Asked whether he would support the union's idea, government frontbencher Bill Shorten said there are no plans for a super tax.
"Housing is a problem. There is no doubt that we need to develop more supply. There's no doubt that people are doing it tough in the rental market," he said.
"The government has no plans that I'm aware of to have any sort of super tax. I think the government's got a strategy and I think we should stay the course and back in what we know."