Greens Propose $1,000 Annual Tax Break for Australians, Funded by Resource Tax

The Australian Greens have proposed a significant tax shake-up that would aim to give almost every working Australian an extra $1,000 per year, funded by increased taxes on gas and mining companies. New party leader David Shoebridge announced the policy, stating it is intended to combat inequality.

The proposal's central tenet is to raise the tax-free income threshold from its current level of $18,200 to $26,000. This adjustment is projected to return over $1,000 annually to nearly all employed Australians. Individuals receiving income support, including pensioners, carers, students, and job seekers, would also receive an additional $1,000 each year.

Shoebridge indicated that the policy could be considered and potentially negotiated with the Labor party before the next federal election, which is scheduled to occur by May 2028. The initiative is estimated to cost $22 billion per year.

To finance this expenditure, the Greens advocate for implementing a 25 percent tax on gas exports and a market-linked resource rent tax. These measures are expected to generate approximately $45 billion annually. "When the price of our resources goes up, the Australian people should get their fair share. After all, the public owns the resources in the first place," Shoebridge plans to state in his address. "Right now, those windfall profits get scooped up by the ultra-wealthy."

Shoebridge also intends to argue that the proposed policy will not negatively impact inflation. "Putting $1,000 in people's pockets only adds to inflation if we don't also do something about corporate profiteering," he is expected to say. "So we'll take the heat out of the economy by trimming those corporate profits and sharing them with everyone. We'll tackle the cost of living by ending this raw deal on our resources and handing the money back to the people who need it. This is how government is meant to work."

While the core proposal has been outlined, specific details regarding which resources would be subject to the new taxes and how these would interact with existing state royalties are still under development, according to ABC reports.

This proposal emerges at a time when government spending is under scrutiny, particularly as the Reserve Bank of Australia (RBA) continues to increase interest rates to manage inflation. RBA Governor Sarah Hunter recently commented on the role of government spending in the current economic climate, emphasizing the central bank's independent role.

This initiative follows a similar set of proposals from the Greens during the 2025 federal election, when then-leader Adam Bandt announced plans for 'Robin Hood reforms' aiming to raise significant revenue through taxes on corporate profits and resource extraction. However, the scale and specific mechanisms of those earlier proposals differed from the current plan.