Australia markets open in 5 minutes
  • ALL ORDS

    6,940.60
    -165.10 (-2.32%)
     
  • AUD/USD

    0.7717
    -0.0163 (-2.07%)
     
  • ASX 200

    6,673.30
    -160.70 (-2.35%)
     
  • OIL

    61.66
    +0.16 (+0.26%)
     
  • GOLD

    1,733.00
    +4.20 (+0.24%)
     
  • BTC-AUD

    58,641.92
    -2,449.38 (-4.01%)
     
  • CMC Crypto 200

    912.88
    -20.25 (-2.17%)
     

Radical 1% tax idea to save economy

Lucy Dean
·3-min read
Close-up, senior female hands taking Australian banknotes (cash, currency) from purse containing many credit cards.  Horizontal, studio, copy space.
A new tax has been proposed. Image: Getty

Former Labor senator Sam Dastyari has proposed a 1 per cent tax on all Australians to cover the economic fallout of Victoria’s unprecedented lockdown restrictions.

Speaking on Today on Tuesday, Dastyari said that if Australia truly was “all in this together”, the country would be finding a way to stem the financial hemorrhaging the Victorian lockdown has triggered.

Victorian Premier Daniel Andrews has announced Victorians will need to abide by new curfew rules, while also following tougher restrictions on how often they can leave their home. Retail stores deemed inessential will also be forced to close for the next six weeks, threatening economic disaster.

“The solution for Victoria is simple, you're going to have to bail the state out and that means the rest of us are going to have to pay,” Dastyari said.

“It looks like you put a 1 per cent tax on the whole country and that money gets spent in Victoria to protect these jobs.”

He said Australia needs to be united, warning that it could be Sydney, Brisbane, Adelaide or Perth that will need bailing out next.

“It could be a hurricane, could be a flood. You bail out your brothers and sisters when they're in trouble.”

Dastyari’s comments come after a group of high net-worth individuals called on governments to permanently increase taxes on the world’s wealthiest to cover the cost of Covid-19.

The 83 super-rich include Disney heir Abigail Disney and Ben And Jerry’s ice cream co-founder Jerry Greenfield.

“As Covid-19 strikes the world, millionaires like us have a critical role to play in healing our world,” the millionaires said.

“No, we are not the ones caring for the sick in intensive care wards. We are not driving the ambulances that will bring the ill to hospitals. We are not restocking grocery store shelves or delivering food door to door.

“But we do have money, lots of it. Money that is desperately needed now and will continue to be needed in the years ahead, as our world recovers from this crisis.”

Australians on Twitter agreed, calling for greater taxes on the rich and multinational corporations.

“Why not tax 1) the people and companies that earn a lot yet pay little tax (eg Rinehart and her lot) 2) Churches and religious organisations that are normally exempt from paying tax,” one person commented.

“Nice idea Sam, but I’d prefer all profit making entities & corps to ACTUALLY PAY TAX. The rich have expanded their wealth since the pandemic hit - the rest of us are a few weeks away from not affording rent,” added another.

Want to take control of your finances and your future? Join the Women’s Money Movement on LinkedIn and follow Yahoo Finance Australia on Facebook, Twitter and Instagram.

All Markets Summit
All Markets Summit