Thread: Mining Super Tax

Gillard seals mining tax deal - ABC News (Australian Broadcasting Corporation)

"he changes, announced by Prime Minister Julia Gillard this morning, include reducing the headline rate of the tax from 40 per cent to 30 per cent.

• Tax renamed the Minerals Resources Rent Tax
• Will only apply to iron ore and coal
• Iron ore and coal will now be subject to a new tax at a rate of 30pc instead of the original 40pc
• Tax will kick in at the government bond rate plus 7 per cent, which would be around 12 per cent
• Oil and coal seam gas to be rolled into the existing Petroleum Resources Rent Tax and taxed at 40pc
• Changes mean the Government loses $1.5 billion of expected revenue"

I still believe this tax is wrong, you cannot single out one industry and tax it on the profits it makes, when there are plenty of other industries who contribute nothing to the economy who also make huge profits...

Originally Posted by Big Shed

Sounds like she has caved in to the mining industry


Gillard cuts mining tax deal | RSPT | MRRT


Short of having the tax dumped altogether I don't think the mining industry could have had a more emphatic victory.

Now watch the spin that this was a "victory" for Ms Gillard where in fact it is a humiliating back down by her.

Yes Fred, a victory for nobody.

The Opposition will claim a victory because they will see Ms. Gillard as weak, the mining industry will claim a victory for "common sense"., the gov will claim a victory because the tax is still there -albeit diminished.

The frightening part is that we have had a magnificent display of the stupidity of govermnents and the power of big business.

What will be the next groupto line up and force the government to bend to their will?

Originally Posted by .RC.

Gillard seals mining tax deal - ABC News (Australian Broadcasting Corporation)

"he changes, announced by Prime Minister Julia Gillard this morning, include reducing the headline rate of the tax from 40 per cent to 30 per cent.

• Tax renamed the Minerals Resources Rent Tax
• Will only apply to iron ore and coal
• Iron ore and coal will now be subject to a new tax at a rate of 30pc instead of the original 40pc
• Tax will kick in at the government bond rate plus 7 per cent, which would be around 12 per cent
• Oil and coal seam gas to be rolled into the existing Petroleum Resources Rent Tax and taxed at 40pc
• Changes mean the Government loses $1.5 billion of expected revenue"

I still believe this tax is wrong, you cannot single out one industry and tax it on the profits it makes, when there are plenty of other industries who contribute nothing to the economy who also make huge profits...

They just can't help using spin. This is not a resource rent tax in any shape or form how can it be when it is on profit!!!!!!

I wonder if the trigger point now takes into account interest costs on borrowings.

I think the result is a reasonable compromise at least they have ditched the loss component as well. Still don't agree with the principle of selective taxation but nothing new in that.

Hope Gillard gives the Henry reform paper some proper consideration now and get serious about fixing the distortions in our economy. Things like negative gearing should go and replace it with a tax deduction over ten years for first home buyers.

Vote m2c1Iw for PM.......what am I saying

Originally Posted by artme

Yes Fred, a victory for nobody.

The Opposition will claim a victory because they will see Ms. Gillard as weak, the mining industry will claim a victory for "common sense"., the gov will claim a victory because the tax is still there -albeit diminished.

The frightening part is that we have had a magnificent display of the stupidity of govermnents and the power of big business.

What will be the next groupto line up and force the government to bend to their will?

In all fairness to both Gillard and the mining industry, this is probably how it should have been structured in the first place.

Seeing she was part of the "gang of four" that dumped this on the country with little thought and/or planning, if she wants to take the "credit" for this tax she should also accept responsibility for the first botched attempt. But why do that if you have a ready made scape goat in Rudd?

As for "caving in", perhaps if they had consulted with industry before they jumped in with feet first they wouldn't have had to "cave in". Setting a threshold for a "Super Profits" tax at the govt bond rate was never going to fly, you may as well invest your money in govt bonds.

I agree with the sentiments of what you say Fred.

I wonder if the "gang of four" were all in agreement in the first place?

Of course we will (probably) never know.

But if anyone has come out looking a little rosey it is Julia Gillard. A clever play by her and the organisers of the coup. Get rid of a PM who's popularity is plunging like stone and damaging the party's image badly enough to make the coming election look like their worst nightmare: bow to the mining industry lobby in such a way as to save some face; and in doing all of thisremove from scrutiny the mess of the eduation spending debacle. Not bad for a week's work!!

And our friend above is right. Do a proper job on tax reform!!

What a wonderful job she is doing.

She just reviewed her own scorecard this morning and and proudly gave herself 'A+'s in all subjects. As one of her subjects, she made me so proud

Her telling us how she is going saves us from having to think. ......What a relief.

And what's the waste of a billion or five in the total accounting of the total debt so far.

Her biggest threat to stop complaining is unspoken: 'Love me.... or you'll get Wayne next'

As a proud Australian, I'd just like to say that it is a relief to have someone in the top job who is confident in her abilities, with a proven track record in spin..... It doesn't really matter what happens to the Country or small businesses as we'll all have our 12% super to fall back on when the unions and the NSW mafia takes over.

Greg



Greg

Now we are not being just a teensy weensy bit cynical are we? I don't think I could stand it!! especially when mixed with all the scepticism and sarcasm.