Oxfam Australia Calls for Crisis Profits Tax Amid Rising Inequality

Oxfam Australia has urged the government to take immediate action to tackle the widening inequality in the country as Coles Group and Woolworths announce their full-year profits for 2024.

Lyn Morgain, the Chief Executive Officer of Oxfam Australia, emphasized the unfairness of the profits made by the supermarket giants in the face of a cost-of-living crisis affecting everyday Australians.

“It’s unacceptable that while everyday Australians are struggling to put food on the table, Woolworths and Coles continue to report staggering profits,” Ms. Morgain stated. “It’s clear the Australian people are fed up with it. We need the government to step in and directly address the failures in the system that allow this toxic situation to continue,” she added.

Woolworths and Coles hold a dominant position in the Australian supermarket sector, controlling a combined market share of 65.5%. An investigation by Allan Fels into pricing practices has shown that this market power, alongside a lack of competition, is contributing to rising prices for consumers.

Ms. Morgain noted, “While this year Coles and Woolworths did not generate the crisis profits spikes we saw in 2021 and 2022, they still raked in huge profits that many in the community are deeply concerned by with food prices so high.”

Oxfam’s analysis revealed that Woolworths alone made $5.6 billion in excess profits during the peak of the COVID-19 pandemic and the Ukraine war. Although the high profit situation has moderated slightly, it remains a pressing issue.

Oxfam Australia is advocating for a ‘crisis profits tax’ to prepare for future excess profits cycles and to implement a tax on excessive corporate profits. Recent polling by Oxfam and YouGov indicates that 80% of Australians consider it unjust for large corporations to exploit tax loopholes.

“A tax on the excessive profits of big supermarkets like Woolworths and Coles would not only discourage price gouging, but also help boost the budget during tough times and provide much-needed funds to address inequality and ease cost-of-living pressures,” said Ms. Morgain.

Oxfam welcomed the contribution from the Greens regarding tax reform, particularly their proposals to close tax loopholes in the mining industry and an excess profits tax for large corporations.