Greens leader Richard Di Natale is calling for a drastic transformation of Australia’s welfare system, to introduce a universal basic income as a “safety net” for everyone – no matter what their employment status is.
The senator will give a lengthy speech to the National Press Club today, and in a preview seen by Starts at 60, he will also call for a new bank, the ‘People’s Bank’, to better support first-time home buyers with low-interest government loans.
He states: “We need a new era of reform; an era of bold policies to tack on this rigged system. The Greens have a plan for a government that works for all of us.”
The initial proposal, if implemented, would see a radical overhaul of the country’s “outdated” social security system, which he claims “can’t properly support those experiencing underemployment, insecure work and uncertain hours.”
He adds: “A modern, flexible and responsive safety net would increase their resilience and enable them to make a greater contribution to our community and economy.
“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.”
He insists it will be about the government taking on a more active role to “look after its citizens”.
Meanwhile, he will go on to flag his ideas for the ‘People’s Bank’, saying it should offer its services online, via Australia Post and other contractors. The bank would offer a “mortgage tracker” account to homeowners.
They would then be able to borrow up to 60 per cent of the value of the property directly from the Reserve Bank of Australia (RBA). He suggests interest rates would start at three per cent, plus 0.5 per cent to cover costs. Elsewhere, the loans would be capped at $500,000 for owner-occupiers, repayable over a maximum of 30 years.
He adds in the speech that it “will give ordinary people access to affordable banking services, while adding real competition to the banking sector”.
“In the face of ongoing misconduct and price gouging, it’s time for Government to step in and ensure that there is a low-cost banking service, backed directly by the RBA, that is focused on the everyday savings and mortgage needs of customers,” he
However, his idea isn’t expected to go down well with everyone, and Liberal backbencher Eric Abetz told The Australian 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”.
He added that the plan could “bankrupt” the country, and added: “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.”