Australia’s top 500 most profitable corporations made billions in “crisis profits”, according to new data from Oxfam.
Global charity Oxfam analysed business profits linked to crises from 2021 to 2023, including COVID-19 and Russia’s invasion of Ukraine, for its “Cashing in on Crisis” report.
It found corporations earned a total of $98 billion in additional ‘crisis profits’.
Here’s what that means.
Context
Theanalysed changes in the net profits of Australia’s top 500 companies before and after 2021.
It found profits increased by an average of more $134 million a day during 2021 to 2023 – a period of global turmoil, pandemic and cost-of-living pressures – compared to 2017 to 2021 profits.
Oxfam calls these earnings ‘crisis profits’ — money made during times of turmoil “significantly” above what a business would have made under ‘normal’ conditions.
Price gouging
Oxfam also flagged concern over a link between(the practice of setting unnecessarily high prices for certain goods) from 2021 to 2023.
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It’sfor businesses to set prices that allow them to make a profit on goods and services. However, businesses aren’t allowed to mislead or lie about the reasons for their prices or price increases.
Here are the ‘crisis profits’ of individual businesses, included in Oxfam’s report.
Crisis profits tax
Oxfam called on the Federal Government to tax “excessive corporate profits.”
It proposed redirecting this revenue to support Australians through future turmoil.
“A tax on the crisis profits of corporations would not only discourage price gouging, but also boost the budget when crisis hits and generate more funds for addressing inequality and cost of living pressures,” Oxfam Australia CEO Lyn Morgain said.
In a recent survey of 1,500 Australians commissioned by Oxfam, 68% of respondents supported the idea of a crisis profits tax.
76% said they were concerned about the growing wealth gap in Australia.
Morgain said millions of Australians “have been pushed to the brink by rising prices of food, energy and unaffordable rent.”
TDA contacted the Federal Government but did not receive a comment at the time of publishing.
