CFMEU pushes ahead with super profits call despite government rebuff

Construction, Forestry, Mining and Energy Union national secretary Zach Smith announced on Tuesday the union will campaign for the introduction of a tax on excess profits by miners and other large companies to eliminate the national shortfall in social and affordable housing.

In an impassioned speech, Mr Smith told the National Press Club that the scale of the nation's housing crisis "demands bold solutions".

The union leader said many of his members were among the two-thirds of Australians under significant financial stress because of the cost of housing, including workers being forced to sleep in their car because they were unable to afford to rent.

"Our economy is meant to serve our society but it is failing this test at the most fundamental level," Mr Smith said.

"A super profits tax is the fairest way to raise the billions of dollars needed to guarantee every Australian has the basic right of shelter."

The CFMEU commissioned a report by consultancy Oxford Economics Australia which found the country currently has a shortfall of 750,700 social and affordable homes and warned it would increase to almost 947,000 unless action is taken to boost the supply of dwellings.

The report estimates an extra $511 billion of funding will be need to close the gap by 2041 - an average of around $28 billion a year.

Oxford Economics has calculated a super profits tax on the mining sector and other companies whose annual turnover tops $100 million would raise $290 billion in the next decade alone, which would cover the cost of closing the housing gap.

But a spokesperson for Treasurer Jim Chalmers said the government's tax reform agenda did not include the introduction of a super profits tax and reaffirmed the government's commitment to its Housing Australia Future Fund, which has stalled in the senate.

"The Albanese government has been absolutely clear about our priorities when it comes to tax reform," the spokesperson said.

"Making super concessions fairer and more affordable, ensuring multinationals pay their fair share of tax here in Australia and our announced reforms to the Petroleum Resource Rent Tax."

The mining industry has also rejected the idea, arguing the current tax system delivers significant revenue to government from the industry.

"The super profits tax was ruled out by the Prime Minister and the Treasurer last year," Minerals Council of Australia chief executive Tania Constable.

"The federal government has just banked a significant $20 billion surplus thanks largely to the mining industry which means the system is working. We need to see more investment in Australia and the talk of more mining taxes will only detract from that goal."

But Mr Smith is undeterred by the initial reaction to his proposal and is forging ahead with the rollout of a national advertising campaign to support the idea.

"This plan won't affect 99.7 per cent of businesses because the tax only kicks in when corporations make astronomical profits," the union leader said.

"By taking back just a slice of exorbitant profits gouged from hard-working Australians, we can transform society to benefit all."

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The CFMEU boss will also take the proposal to the ALP National Conference in August and seek to have it enshrined in the party platform.

"The federal government has the opportunity to define its legacy as ending homelessness, boosting productivity and lifting millions out of poverty," he said.

"Let's be the generation that didn't let this crisis become the norm. Tax super profits, fix the housing crisis."

The government is yet to formally respond to the idea, but the Rudd Labor government was subject to a well-funded and devastatingly effective campaign by the mining sector in 2010 when it attempted to introduce a super profits tax on the industry.

"I know the corporates and the status quo defenders will cry wolf," Mr Smith said. "That's their job. But they should understand it's actually in their interests to get on board."

The union leader said the government needed to act.

"Not only can government step in to fix big intractable national problems - it must," he said. "The state has a role to play and Australians want the state to play it."

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