The Greens want to raise government revenue to 26% of gross domestic product – the level it was at under John Howard – and to increase infrastructure investment to take advantage of record low interest rates.

They have also confirmed they plan to take to the election a so-called “millionaire’s tax” under which people earning more than $1m pay an extra 5% marginal tax.

The Greens’ treasury spokesman, Adam Bandt, and finance spokesman, Peter Whish-Wilson, will release their party’s 2016 budget principles on Friday, just days before the treasurer, Scott Morrison, releases his much-anticipated budget.

They will be critical of any budget measures that make Australia more unequal, they say. But they will support measures that increase revenue to help to pay for better schools and hospitals.

“We’d rather have an Australia where everyone gets great public education and healthcare, which means being upfront about growing our revenue base by getting rid of unfair tax breaks and asking the very wealthy to pay more,” Bandt said.

He said the Coalition and Labor needed to get over their debt phobia and realise there’s “never been a better time for the government to borrow to fund key public infrastructure”.



“We accept the advice of experts that, as we grow the new economy, Australia’s government net debt could reasonably grow to 25% of GDP,” Bandt said.

“These debt levels are well below the OECD average and, at current interest rates, would allow the federal government to borrow up to an additional $75bn over the next 10 years to fund productive infrastructure while keeping net interest payments below 2% GDP.”

The Greens say they will support measures that raise more revenue by reforming “unfair tax breaks” that harm the environment – such as the diesel fuel rebate for miners – or that increase inequality, such as superannuation tax concessions, capital gains tax concessions and negative gearing for new properties.

They will support new taxes on environmental harms, such as carbon pollution, and taxes that tackle inequality, like a marginal tax rate for millionaires.

But they will oppose new taxes that increase inequality, like lifting the GST.

The Greens leader, Richard Di Natale, told the National Press Club on Wednesday that it would be “inconceivable” that the Greens would form a minority government with the Coalition if the election came to that, given its views on global warming, asylum seekers and renewable energy.



John Quiggin, Australian laureate fellow in economics at the University of Queensland, has added his support to the Greens’ budget principles.

“It’s time to lay to rest the long-standing myth that the Liberal and National parties are superior economic managers,” Quiggin said.

“The Greens’ statement of economic principles represents a coherent, progressive and responsible approach to economic management, contrasting very favourably with the shambles of the past three years under the Abbott-Turnbull government.”

Bandt says it’s time the Coalition and Labor got over their surplus and deficit obsession.

“It’s not whether the budget is in deficit or surplus that matters, it’s the sustainability and justification for the budget position,” Bandt said.

“Better to have a small deficit and well-funded public schools than a small surplus and an undereducated society.”