Ken Henry Tax Reform

[Krusty the Klown]

Wayne Swan called this "the biggest tax reform of our lifetime."

It's more like the biggest anti-climax of our lifetime.

All this stuff is just more of what we get each year in the annual budget.

What a fizzer.:dunno:

 

[sammy84]

How long again did it take Ken Henry to come up with this review?! That was an utter waste of time and resources. Instead of reform we got a few tweaks to the system.

 

[noco]

Krudd and the goose have cherry picked all the sweetners and dropped the bad bits.

Must be election year!!!!!!!!!!!!What else could anyone expect from Labor who are desperate to turn the polls around?

 

[Calliope]

Government wimps out on true tax reform

As David Koch says;

I suppose we should have all known this would happen. This was meant to be the tax version of the 2020 Summit. Nothing has come of that either.

http://www.news.com.au/money/money-...eform-david-koch/story-e6frfmd9-1225861173369

 

[JTLP]

Wonder what sort of bloodbath we will see come Monday for resource stocks...40% tax on super profits

Typical lack of hindsight that could be a very interesting turning point...wonder if WA will break away and become their own? I'd join :

Also...why with mounting debt would you reduce company tax...somebody please explain.

 

[sammy84]

Wonder what sort of bloodbath we will see come Monday for resource stocks...40% tax on super profits

Typical lack of hindsight that could be a very interesting turning point...wonder if WA will break away and become their own? I'd join :

Also...why with mounting debt would you reduce company tax...somebody please explain.

I'm pretty sure this has been factored in already. Enough was leaked about the initiatives and they had to be paid for someway.

 

[gooner]

This is going to put a lot of stress on business isn't it? I wonder if wage increases will freeze to compensate. Surely. And then, what's the net gain? Nada. I suppose it's forced savings, something we're not very good at. Will be interesting to see how it pans out.

The mining tax could be one of the storms brewing out there about to collide...

Companies will just cut wage increases to compensate - that is what happened before. As you say forced saving for everyone.

 

[Calliope]

After splurging the Howard legacy, Rudd complained that he would have had more money to waste if Howard had plundered the big resource industries.

Rudd should thank God every night for the profitability of the resource industries, without them we would be a basket case like Greece.

He is now going to squeeze them dry to get his hands on the shareholder's profits.

 

[Alpha_Bet]

Interesting opinions expressed here.
Anyone aware of any changes to self managed superannuation and the ATO's treatment of works of art, automobiles, racehorses etc. Was mooted but have been unable to find any information post Henrys' reform release. Bet the Fin Review flies off news stand tomorrow.

 

[drsmith]

Wayne Swan called this "the biggest tax reform of our lifetime."

It's now in the same catagory as "the biggest moral challenge of our time", out the door.

The baby might be gone but some of the bathwater has been retained. Firstly, there's an oversized shirt from the child's wardrobe, a wish for a smooth Chinese growth path and a copy of the fairy tale "L-A-W tax cuts" by Paul Keating.

The smell coming from inside the car is from the child called NBN. It's just pooped itself.

 

[Wysiwyg]

He is now going to squeeze them dry to get his hands on the shareholder's profits.

If Labor hold government and the RSPT is implemented from 2012, then maybe the speculative end of the market will get more involvement. I would like to see that.

 

[sammy84]

If Labor hold government and the RSPT is implemented from 2012, then maybe the speculative end of the market will get more involvement. I would like to see that.

Very good point. I can't see how any of these new measures will be bad news for the market. More money into super=more cash inflows into the market. There have been new measures implemented to help exploration miners etc. Lower company tax rate. I guess the only, and biggest losers in all this, will be BHP and RIO.

It will be interesting to see who gets captured under the RSPT. It will also interesting and how many JV and holding companies are going to be created in order to try and escape this tax.

 

[skyQuake]

Still reading through it, any idea what will happen to the mid caps? Some of them don't have mines in Aus.

 

[Calliope]

Enough was leaked about the initiatives and they had to be paid for someway.

That's right, and the Big Resources Tax Grab is to replace the billions squandered in the failed stimulus scheme.

Abbott was dealt from a stacked deck again tonight on the wormed presentations of him and Rudd on Channel 7. How can you compete for popularity against someone whose tax agenda is to rob the rich to give to the poor.

 

[Gerkin]

Interesting opinions expressed here.
Anyone aware of any changes to self managed superannuation and the ATO's treatment of works of art, automobiles, racehorses etc. Was mooted but have been unable to find any information post Henrys' reform release. Bet the Fin Review flies off news stand tomorrow.

Thats in the Cooper review part III......government will most likely adopt it too, dont thik it will be retrospecive though, think that it moght e whatever you have in them now can stay but no nw purchases

 

[So_Cynical]

Still reading through it, any idea what will happen to the mid caps? Some of them don't have mines in Aus.

Thinking the same thing, lotsa mid caps pay royalty's offshore so its not like the Fed govt is going to reimburse them...are they?

They shouda released this on Saturday so there was time to digest it before the market opens tomorrow....there so many questions.

 

[condog]

Easily the worst PM this nation has ever had the unfortunate experience to witness. Welcome back debt, welcome back higher taxes, welcome back higher interest rates.

Complete morons.

 

[Whiskers]

Krudd and the goose have cherry picked all the sweetners and dropped the bad bits.

I haven't studied all the detail yet, cos I had a Sunday arvo nap (after a hard morning of course) and missed the news.

But, I'm curious about which "bad" bits you think they should adopt.

What the Government won't pick up

While the report was released today, the Treasurer was quick to list certain parts of the review the Government definitely won't be implementing, in the "interests of business and community certainty".

So basically - these are the more out-there recommendations that the Government definitely won't be using.

* Requiring parents to work when their youngest child turns four

* Hit single-income families

* Restrict eligibility to rent assistance for families

* Abolish the luxury car tax

* Change alcohol tax

* Ask states to charge market rents to people in public housing

* Reduce pay for those in defence forces

* Remove the Medicare levy


http://www.news.com.au/money/money-...it-means-for-you/story-e6frfmd9-1225861163137

Must be election year!!!!!!!!!!!!What else could anyone expect from Labor who are desperate to turn the polls around?

Well, I don't live for politics, but last I saw an election was near and the gov was in the lead.

PS: I'm having a quiet ale atm (including the damn cat having a lick of the bottle while my back was turned) and wondering whether you may have had one too many today, Calliope.

That's right, and the Big Resources Tax Grab is to replace the billions squandered in the failed stimulus scheme.

But the "stimulus scheme" in so far as stimulating the economy was almost too much of a success, what with inflation looking like popping out the top end of the ideal range.

 

[trainspotter]

40% tax on resource companies? Wtf ?? This is not a tax reform? This is just a tax grab. I would be predicting that a lot of mining companies will now not proceed on many future projects due to reduced profit margins involved.

 

[Whiskers]

40% tax on resource companies? Wtf ?? This is not a tax reform? This is just a tax grab. I would be predicting that a lot of mining companies will now not proceed on many future projects due to reduced profit margins involved.

I'm curious to see the effect of this new resource tax. However I can't see resource companies that are making mega profits shutting down business.

In principal I don't have a problem with reducing company tax and increasing exploration deductions/rebates etc and returning more of the resource profits to the community as opposed to going to overseas shareholders for example.

But, what exactly does the windfall in "40 per cent tax on windfall mining profits" mean and what part or level of profit exactly does it apply to?

So far I've only heard that it's an extension of the resource rent taxes and only applies to companies making mega profits. Is that mega as in net or % terms?