Joint statement on Tax and Spending

We, the undersigned community sector organisations, urge the Federal Government to scale up public investment in essential services and supports to meet growing community need and strengthen our resilience — and deliver targeted tax reform to support this investment.  

The cost pressures of recent years have already pushed many people beyond their limits. Those on the lowest incomes are already skipping meals, delaying medical care and rationing energy just to get by.  

In addition to the devastating loss of life, the war in the Middle East is now placing additional pressure on our community. Costs are already going up, and unemployment is likely to increase as more interest rises are predicted.  

We are trusted community organisations representing or working on the frontline with people experiencing poverty, disadvantage and marginalisation. We are seeing the worsening situation first hand.  Our services are already operating at capacity, facing growing demand and more complex needs. 

Our experience points to a clear conclusion — current policy settings are not meeting the needs of our communities. Significant and sustained public investment is essential. 

Investment in First Nations self-determination, social security, social and affordable housing, community services, disaster resilience, and renewable energy will reduce financial stress and strengthen our economy and communities. 

Staying the course on renewables reduces our exposure to global energy shocks. Investing in community services strengthens our ability to respond to disasters. Raising the rate of JobSeeker, Youth Allowance, and related income supports to liveable levels gives people the stability they need to weather rising costs. 

Australia has the capacity to raise additional revenue in fair and sustainable ways to support this investment. We highlight three practical and targeted steps the government could take. 

First, introduce a 25% levy on exported gas. The levy would ensure people in Australia receive a fairer return from our natural resources. Such a measure could raise $17 billion in revenue each year, while potentially reducing gas prices for households. 

Second, curb the capital gains tax discount and negative gearing. This tax reform would generate $20 billion over the first four years, and significantly more in the long-term, while easing pressure on the housing market. 

Third, phase out the diesel fuel rebate for mining companies. This change would generate around $20 billion in revenue over the first four years, while improving energy security and reducing climate pollution. 

These common-sense reforms would strengthen our revenue base while contributing to greater fairness across our housing, energy, and tax systems. 

A fairer and more resilient Australia is within reach. Strong communities and a strong economy go hand in hand, and sustained public investment is central to both. 

We stand ready to work with the Federal Government to deliver these outcomes for communities across the continent.

Sign on is open to all community sector organisations. Deadline for sign on is COB Friday 17 April.