As Australia’s federal budget delivery approaches, a coalition of 50 leading Australian community and welfare organizations has launched a coordinated call for sweeping tax reforms, targeting gas extraction, housing tax concessions and mining industry subsidies to raise tens of billions in annual revenue that would go directly to easing widespread cost-of-living strain for low-income and vulnerable households.
Leading the advocacy coalition are two of the nation’s most prominent welfare groups — the Australian Council of Social Service (ACOSS) and Oxfam Australia. In an open letter to the Albanese government, the coalition outlined three targeted, practical policy changes it describes as commonsense reforms that would strengthen the national revenue base while correcting inequities across Australia’s housing, energy and tax systems.
The first proposal is the introduction of a 25 percent levy on exported natural gas. The coalition argues this measure would secure a fairer return for Australian citizens from their nation’s natural resources, with projections indicating it could generate up to $17 billion in new annual public revenue. Beyond expanding government funding, the policy is also expected to help lower domestic gas prices for household consumers, delivering immediate relief to energy cost burdens.
Second, the coalition calls for rolling back two longstanding housing tax policies: the capital gains tax discount and negative gearing arrangements that primarily benefit property investors. The group estimates this reform would raise $20 billion in revenue over its first four years, with larger long-term gains. Additionally, curbing these tax concessions would ease competitive pressure on the residential housing market, helping to cool sky-high property prices and improve access for first-time home buyers.
The third proposal is the gradual phase-out of diesel fuel rebates for mining companies. This change is projected to add another $20 billion in revenue over the first four years of implementation, while delivering two broader public benefits: strengthening national energy security and cutting harmful climate pollution tied to fossil fuel extraction activities.
All new revenue generated from these three reforms would be redirected to expanded community services and targeted income support, the coalition confirms. Key priorities include increasing the base rate of JobSeeker, Youth Allowance and other core income support payments to give vulnerable households the financial buffer they need to cope with soaring living costs. The coalition also notes the additional funding could support other critical national priorities, including First Nations self-determination initiatives, expanded social and affordable housing, improved disaster resilience, and accelerated renewable energy transition.
ACOSS Chief Executive Cassandra Goldie emphasized that the current cost-of-living crisis has created an increasingly unsustainable situation for Australia’s most vulnerable communities. “People on the lowest incomes are skipping meals, delaying medical care and rationing energy just to get by,” Goldie said. She added that frontline support services across the country are already operating at full capacity, facing ever-growing demand and increasingly complex needs from vulnerable households. “Current policy settings are not meeting the needs of our communities – it’s clear that significant and sustained public investment is essential.”
Goldie pointed out that Australia currently collects roughly $100 billion less in annual public revenue as a share of the economy compared to the average for other OECD member nations, arguing the country has ample capacity to raise additional fair, sustainable revenue to meet pressing community needs. “We clearly have the capacity to raise more money and invest it where it’s needed,” she said. These policy proposals have already been formally submitted to the federal government as part of ACOSS’s official pre-budget submission, which pushes for increased investment in income supports and essential public services.
Treasurer Jim Chalmers is scheduled to deliver the 2025 federal budget to parliament on May 12, where the government will outline its revenue and spending priorities for the coming fiscal year.