Greens leader Richard Di Natale will call for a radical replacement of the welfare system with a universal basic income scheme where all Australian citizens would receive a regular, non-means-tested wage from the government, with no obligation to work.
In a speech to the National Press Club today, Senator Di Natale will also call for the establishment of a “People’s Bank” to provide low-interest government loans to first-home buyers.
He will propose the Reserve Bank should offer banking services online, via Australia Post and other contractors.
It would offer a no-frills “mortgage tracker” account to homeowners, with those paying off their home able to borrow up to 60 per cent of the value of the property directly from the RBA.
Interest rates would start at 3 per cent, plus 0.5 per cent to cover costs. Loans would be capped at $500,000 for owner-occupiers, repayable over a maximum of 30 years.
Amid internal tensions following his party’s loss to Labor in the Batman by-election in Melbourne’s inner north last month, Senator Di Natale will argue for an overhaul of the “outdated” social security system that he says is unable to keep up with the changing nature of work and increasing inequality.
“It can’t properly support those experiencing underemployment, insecure work and uncertain hours.
“A modern, flexible and responsive safety net would increase their resilience and enable them to make a greater contribution to our community and economy,” Senator Di Natale will say.
“That’s why we need a universal basic income. We need a UBI that ensures everyone has access to an adequate level of income, as well as access to universal social services, health, education and housing.’’
Senator Di Natale will say the Greens are the only party proudly arguing for a much stronger role for government. He will tout his “People’s Bank” as a means of giving current and future homeowners an advantage over investors and of injecting competition into the banking sector. ‘Regressive and utra-socialist approach’
Liberal backbencher Eric Abetz says Senator Di Natale should look to the poverty and riots in Venezuela before he recommends a “regressive and utra-socialist approach of less work, higher welfare and killing profitable businesses”.
Senator Abetz said Senator Di Natale’s proposal of a “taxpayer-funded wage from government without mutual obligation” followed the Greens’ suggestion last year that the working week should be shortened to 4 days.
“Australians watching this address could be forgiven for thinking they mistakenly tuned into ABC Comedy for the sheer economic lunacy that will be on display,” Senator Abetz said.
“It’s catastrophic impact would see the biggest taxpayers in Australia, the banking sector, become unprofitable and shut down and his plan for universal taxpayer handouts would see our nation bankrupted in a matter of years.
“This regressive and ultra-socialist approach of less work, higher welfare and killing profitable businesses has been tried and failed around the world and you need only look at the levels of poverty and riots in Venezuela.
“Senator Di Natale must explain today who will pay for this regressive agenda when he runs out of other people’s money.
“Further, Bill Shorten must immediately rule-out these proposals being considered by any future Green/Labor Government.”
