We need to add mining tax to reforms if we are serious about addressing inequalities
Norway sets an example by taxing the profits of their oil and gas sector 78%. This money goes into Norway’s sovereign fund, which funds those types of Scandinavian government services that we can only dream about eg. free universities, cheap childcare while their income tax rate is a flat 22% and they run strong budget surpluses.
In the meantime, the mining industry in Australia pays standard corporate tax of 30%. Yes they also pay mining royalties for what they extract but this is a production cost that is tax deductible.
The Australian Institute has graphed this in a good visual to show the difference.
On top of the demand side pressures on house prices, interest rates, tax policies, immigration, the mining industry restricts the supply side by taking away skilled trades from the housing industry.
I know this will be preaching to the converted for many, but we need to keep talking about this more.