Advice group director rejects Greens’ proposed ‘tycoon tax’

This week, the party announced it is pushing for a tax which would see a 40 per cent corporate super-profits tax on the excess profits made by big corporations, including mining corporations.

The tax would be served in two parts: for non-mining corporations with over a $100 million turnover, the tax would apply to their super-profits; and for mining projects, tax on corporations will be assessed on a project-by-project basis.

Speaking to ifa, Marshall Brentnall, director of Evalesco Financial Services, said he does not support the proposal.

“While it might be a little unfashionable in the midst of the enormous levels of government intervention as a result of COVID, as a general principle, I prefer to see less government intervention in the economy, and that we all grow when individuals are free to participate in the market using their own initiative and personal drive to create wealth and opportunity,” Mr Brentnall said.

“It is this very approach that has enabled our economy to grow, for living standards to increase as they have and in time it is this very innovation that will deliver better outcomes for the environment and society.

“The Greens’ proposed tycoon tax, a scheme to selectively target individuals or industries that have been successful, doesn’t rest well with me.

“It does not factor in the risk associated with building those businesses or the benefits for stakeholders such as employees, shareholders and the community more broadly through the taxation each stakeholder pays in the form income tax and GST for individuals and company tax and payroll tax for businesses.”

Earlier this week, Greens Treasury spokesperson senator Nick McKim said the fact that many Australian billionaires have doubled their wealth during the pandemic — including Harvey Norman which lifted profits by 75 per cent to a record $841 million — shows that change is needed.

“Rather than proposing a penalty for success approach, the Greens might seek to outline their priorities, the costs associated with them, and how they would raise monies without adding to the tax burden,” Mr Brentnall said.

Mr Brentnall joined the ifa Show podcast earlier this year to discuss ethical investing. Listen to the full podcast here.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.