Nationals heffernan fighting tree planting tax
Greens to introduce ‘farm tax’
On Monday the Parliamentary Budget Office forecast it would raise between $2.8 billion and $5 billion over the budget period.
Under the proposal a farmer would pay a fee of up to 1.25 per cent on all of the income generated by their farm, up to $10,000 per year for each adult, and $15,000 for each child.
And farmers would have to pay taxes on the income.
Greens Senator Larissa Waters will reintroduce her farm tax this year.
“The Greens believe that the best approach for Australia is to move from taxing the wealthy to taxing all Australians, including farmers,” she said.
“We have a surplus of income and we need to use it well in order to maintain our social safety net.”
But Professor Peter Ferguson, of Monash University’s Institute of Food Economics and Management, warned the measure would cause hardship for Australian farmers.
“If you consider the average income in Australia in 2015 it’s a bit over $180,000 per head, which is $50,000 less than what the Government estimates the farmers will need for it to raise $1.25 billion over eight years,” he said.
Professor Ferguson said if farmers were being left paying tax rates above that of the middle class, “that could actually harm the economy more.”
“For example, if the farmers had paid tax rates just 50 per cent of the middle class, they would need a subsidy from government, which they wouldn’t receive, so it’s going to exacerbate the very real problem of Australia being a landlocked country that doesn’t tend to spend mu우리카지노ch money on its people, so a lot of farming goes on very, very little income,” he said.
“What the new tax should do – and is already happening under some other forms of taxes around the world – is make farmers more competitive by making it more difficult for them to earn profits on farm, and that will help to limit overall incomes.
“It is an income-rich and low-tax measure and I think it does the least damage that can be done.”
Senator Waters said she will try to persuade her colleagues to back her initiative.
“We may well lose the vot