Only 11% in poll wanted lower public spending, less tax revenue and more inequality • Sign up to receive the top stories every morning

This article is more than 2 years old

This article is more than 2 years old

Almost two-thirds of voters want the government to tax more, spend more and reduce inequality, a new poll has found.

The poll of 1,557 Australians by Research Now for the progressive thinktank the Australia Institute shows support for a more generous state dwarfs the support for small government.

It found 64% of respondents want “more public spending on public services and infrastructure, funded by more tax revenue, in particular from wealthy people and profitable companies, and less inequality in Australian society”.

That compared with 11% who opted for lower public spending, less tax revenue and more inequality. Some 10% said they wanted “neither of these” and 15% were unsure.

The poll adds to pressure from an open letter published on Tuesday warning the Turnbull government that Australia is “a low-tax country” and calling for higher taxes to fund social spending.

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The Australia Institute letter was signed by prominent economists and public figures including the former secretary of the Department of Prime Minister and Cabinet Michael Keating, the Nobel laureate Peter Doherty, the Miles Franklin-winner Anna Funder and the Australian Council of Trade Unions secretary, Sally McManus.

The 2018-19 budget to be delivered on 8 May is expected to contain income tax cuts on top of the Coalition’s existing plan to cut company tax from 30% to 25% for companies earning more than $50m a year.

The second tranche of the $65bn 10-year company tax cut plan is still before the Senate with the Turnbull government needing two more votes from Derryn Hinch, Tim Storer or the two remaining members of the Nick Xenophon Team.

The poll found that a majority of voters for all parties want more spending and tax: with 56% support from One Nation, independent and other minor party voters, 60% support from the Liberal and National parties’ voters, 71% support from Labor voters, and 75% from Greens voters.

The Australian Council of Social Services has warned the Turnbull government in its pre-budget submission that a “milkshake and sandwich” income tax cut is not the right way to address pressure on household budgets.

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But the latest Department of Finance figures show the government has received $5.5bn more revenue than it expected in the current financial year than when it updated the budget numbers for the Mid-Year Economic and Fiscal Outlook, raising expectations that the budget can afford to me more generous than in past years.

On Tuesday the treasurer, Scott Morrison, told the ABC’s AM program that the budget would be “responsible”.

“I am not Santa Claus, it won’t be Christmas in May, but, you know, I don’t intend to be the Grinch either when it comes to these things,” he said.

Morrison said the budget would contain “measures the country can afford” to invest in a stronger economy, middle-income Australians, infrastructure and services.

Later, at a doorstop, Morrison said the budget also “needs to continue to exercise the restraint that has been so important in ensuring that we bring that budget back to balance in 2020-21”.

Asked about the call for higher taxes, the treasurer dismissed it as “a numpty of an idea”.

“The idea that you increase taxes to grow the economy is stupid,” he told reporters.