Greens’ handout to cost $254b
A Greens plan to overhaul the nation’s welfare system to give free cash to all Australians has been slammed One researcher predicts an annual cost of $254 billion. The researcher also predicts the proposal for a Universal Basic Income would mean a top marginal tax rate of 78 per cent.
A GREENS plan to overhaul the nation’s welfare system to give free cash to all Australians has been slammed.
One researcher predicts an annual cost of $254 billion. He also predicts the proposal for a Universal Basic Income – a payment for all citizens designed to reduce poverty and inequality – would mean a top marginal tax rate of 78 per cent.
Social researcher Ben Phillips’ analysis shows all marginal income tax rates would need to rise by 33 per cent to pay for the welfare proposal.
His model looked at what it would cost to pay all Australians aged 15 and over $23,000 a year (the Age Pension) and children $5500 a year (the maximum rate of Family Tax Benefit A).
He found it would cost a massive $254 billion per year or about 15 per cent of Australia’s GDP.
The UBI plan, announced by Greens leader Richard Di Natale at the National Press Club in Canberra on Wednesday, is being trialled in several locations internationally at the moment, including Finland, The Netherlands and Canada.
Senator Di Natale argued it would be the “foundation of a decent society” and replace the current “outdated” welfare system.