We need a more sustainable and resilient economic system to protect both people and the planet

Close to half of Australia's biggest mining, energy and water companies paid no tax in 2021–22. This is a BIG problem and growing worse every year.

The Australian Institute stated, ”To be clear: the world cannot afford for new gas projects (or any other fossil fuel projects) to be opened if we want to avoid dangerous climate change”. But it has become abundantly clear that Australia’s policies are grounded in the interests of fossil fuels, not decarbonisation.

“The facts are undeniable. This abdication of leadership is criminal,” Guterres said in a statement. “The world’s biggest polluters are guilty of arson of our only home.” The US withdrew from the Paris climate agreement, with Trump defining his approach to fossil fuel extraction as, “drill, baby drill”, and sadly, we are no different.

Instead of funding green technologies our governments are building sea walls. The idea that billions of people can just adapt to worsening climate impacts is a “false comfort”. There is no way to ‘adapt’ to temperatures beyond human tolerance. In 2024, annual global warming reached a record 1.54C above the preindustrial average, with many parts of the world experiencing unprecedented, catastrophic weather events.

We are now rapidly barrelling toward 1.5 degrees, yet last year the Australian government provided $14.5 billion in subsidies to the fossil fuel industry and provided only $2.9 billion to renewable energy. We collect more from vehicle registrations than the gas industry pays in royalties, with 30% of these massive companies paying absolutely no tax and those that do pay, pay as little as 7%. 

Some of the biggest problems we can solve

Some of the biggest problems in Australia are tax avoidance schemes and lack of political transperancy. If we are to save our environment and save our economy, we urgently need to change the system and in particular tax avoidance startegies and profit shifting. It’s not a funding problem; it’s a priorities problem. We need these companies to help us pay for the transition to a better future

Like Trump has shown, in the next ten years, continued wealth inequality in Australia has the potential to exacerbate social and economic issues, impact areas like access to education, healthcare, and affordable housing, particularly for younger and lower-income Australians.

Financial inequality, is harming both the financial system and the environment. Inequality leads unsustainable consumption patterns, exacerbate environmental damage, and undermine economic stability. It's difficult to tax individuals as they would simply move to Dubai and avoid tax, but companies benefitting from our resources have no option to relocate and really should be paying our nation for extracting and profitting from our resources.

If we removed tax avoidance strategies and profit shifting this would result in far greater economic stability

If tax justice were enforced on large corporations and billionaires:

• Everyone else could pay less tax

• Public services would be better funded

• Economic inequality would shrink

How Financial Inequality Hurts the Financial System:

• Reduced economic stability:

  High levels of inequality lead to increased consumption, borrowing, and risky investments, potentially creating bubbles and instability in financial markets, as evidenced by the 2008 global financial crisis. 
  

• Erosion of social cohesion:

  Large income gaps can lead to social unrest, political polarization, and reduced trust in institutions, potentially impacting long-term economic growth and stability. 
  

• Reduced investment in infrastructure:

  When wealth is concentrated in the hands of a few, there may be less investment in essential infrastructure and social programs, hindering overall economic development. 

How Financial Inequality Hurts the Environment:

• Increased consumption:

  With donations from the BIG mining companies and the mega rich are controlling our government decisions leading to ever increasing investment in fossil fuels and killing our planet.
  

• Unsustainable practices:

  These economic activities, driven by inequality are leading to unsustainable resource extraction, land degradation, and deforestation. The amount currently invested into green technologies is nothing campred to the investment in fossil fuels and carbon intensive activities.
  

• Climate change impacts:

  Unless Australia slows down their investment in fossil fuels and starts developing (not just talking about it) green technologies, the world will turn on us. Actions are already being taken to start legal action against countries like Australia adversely effecting the poorer regions (our response was to allow them to move here) this will cause even greater problems with our already degrading infrastructure and eroding lifestyle for the every day man.
  

• Environmental injustice:

  Disparities in environmental risks and access to resources can create a cycle of poverty and environmental degradation, where we will bear the brunt of these negative consequences. 
  

In essence, addressing financial inequality is not just about social justice; it's also about creating a more sustainable and resilient economic system that can protect both people and the planet. 

I propose that busineses refuse to pay their taxes until the fossil fuel industry pays taxes. If the billionairs and large coporations paid 20% tax we couold actually reduce tax for businesses and peopl earning less than 200K a year to ten percent adn be better off than we are now.

THE CURRENT TAX SITUATION

• Small-to-medium businesses often pay close to the full corporate tax rate (25–30%).
  

• Large multinational corporations, especially in fossil fuels, mining, and tech, often use legal loopholes (like transfer pricing, deductions, debt loading) to pay single-digit effective tax rates or less.
  

• High net-worth individuals and billionaires often structure income to avoid tax — using trusts, capital gains discounts, offshore holdings, etc.

The solution seems simple

Let’s assume:

• Top 10% of companies and billionaires paid a minimum 20% effective tax.

• This closes much of the tax gap (estimated in Australia to be $50B+ annually, especially in corporate avoidance).

If that revenue was captured:

• We could cut income tax for people under $200k to 10%

• We could reduce business tax for SMEs to 10–15%

• AND still have more funding for services, infrastructure, health, education

Storing it in an offset account would:

• If done collectively, like a tax strike, is not illegal, it becomes civil disobedience — a political move, not tax evasion. Similar to how unions negotiate by withholding labor.

It would:

• Pressure the government.

• Draw massive media attention.

• Risk audits, penalties, but send a message: "We’re not avoiding tax — we just want fairness."

Author Sean Jacque Casten

Climate Change Advocate