REPORT | Windfall profits: Time to fix loopholes & subsidies to serve Australians better

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Reports and Analysis  |   Tim Buckley  |  Aug 17, 2022

REPORT | Windfall profits: Time to fix loopholes & subsidies to serve Australians better

Overview

  • Introducing an equitable multinational corporate taxation and progressive royalty regime on Australia’s public fossil fuel resources could contribute $322bn of tax and royalty income over the coming decade. If applied from 1 July 2022, the $55bn boost in 2022/23 would be 5-10 times that contributed by fossil fuel companies in 2021/22. 
  • $55bn is 54 times the annual Federal spend on environmental protection.
  • This would deliver a net benefit to Australians, generating revenue for vital social, health and education services, and lowering the domestic cost of gas and hence electricity produced from Australia’s public resources. It would also potentially underpin the fiscal capacity to expedite emergency payments to people most harshly hit by rampant fossil fuel price inflation, and to offset skyrocketing domestic energy costs by funding energy efficiency and distributed energy solutions (induction cookers, ground heat pumps, rooftop solar, EVs) to permanently reduce reliance on fossil fuels.
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