Dr Henry calls for future government to look into a super profit for all industries..

Dr Henry has also called for future governments to look into a super profits tax on all industries, the Australian Financial Review reports.

He said banks and retailers should be included, but the corporate tax rate would have to be lowered further to 25 per cent in order to attract enough foreign investment, the newspaper reports.

Read full article here

Is this a starting of introducing a marginal tax rate system we have for individuals into corporate tax system?

Does anyone know of countries that treat company profits the same way as individual income when accessing tax?

Cheers,
Oracle.
 
Is this a starting of introducing a marginal tax rate system we have for individuals into corporate tax system?

Did you mean "progressive"? If there is any serious thought of this I could see thousands of companies being wound up and reverting to sole trader/partnership arrangements.
 
Is this a starting of introducing a marginal tax rate system we have for individuals into corporate tax system?

Did you mean "progressive"? If there is any serious thought of this I could see thousands of companies being wound up and reverting to sole trader/partnership arrangements.

Yes, that's what I meant :)

Cheers,
Oracle.
 
the tax grab is on.

i was predicting this about 5-6 years ago, i remember the conversation well.

my theory was that the govt was not spending (when they weren't - on anything - just saving) and i said to my FIL that when a labour govt gets in, it'll be pished down the drain and then the tax grab will be on. they can't raise taxes much more for the voting public, so they'll look to taxing companies harder.

i can't believe this was back in 2005 - and now, only 5 years later, we're $40bil+ in deficit from a labour govt who are now wanting to tax anything that moves, breathes, or generates money.

regardless of what happened in between then and now, it seems the entire world is slowly embarking on the bandwagon.

which makes me think back to David Rockefeller's speeches, and how so much of the world economy, since women won the right to vote, is driven by tax dollars and how vitally important it is that EVERYONE work to generate taxes. the retirement age is being increased, deductible expenses are being clawed back, and now extra-over taxation legislation for companies earning more than the govt can guarantee in bonds.

and now the monster is exponentially growing and exponentially hungry, that in the not-too-distant-but-not-anytime-soon future, capitalism will fall on it's bum. the powers that be will sell us on a new, safe, "leave-it-to-us" economy and wrap it up and remanufacture and rebrand it all into communism/socialism, and we, the daft and stupid sheep to the slaughter, will not only want it, but demand it.

and that communist economy will drive a tax vehicle that no regular joe will see any benefit from. it wil be a play fund for the shadow drivers and financiers now that state, church and bank are all one and the same. banks funding govt will demand certain conditions for their cause, govt spends banks money and makes taxpayer work to pay the interest while the church influences the growing public stupidity to "help" them vote for which party is best for "our" concerns. bank > govt > church.

i call 2025 - give or take a few years. welcome to the new dark ages.
 
yes it is a worry. this Henry guy is a puppet for bigger govt, bigger taxes.

it's just so ludicrous... flush $40bn away on plasmas and then tax the bajeesus out of anybody or thing that is profitable!
 
in fact, all we're going to hear about in the next few years is "bracket creep" and "affordability" as wages stagnate and taxes rise.
 
it wouldn't worry me IF THEY DIDN'T WASTE SO MANY BILLIONS!

that just peeves me off no end. the government (at all levels) waste billions upon billions of unaccountable dollars a year, and instead of reining in this waste by fixing the leaks they just decide to turn the tap on harder.

anyone who ran a private enterprise like that would be out of business before the end of the week.
 
Well said Lizzie, I wholeheartedly agree. It makes my chest hurt to think about the lost billions. Seriously :( I now have to try not to think about it as I am too young for more grey hairs.

I'm finding it difficult to put into words but I'm damned annoyed (to put it mildly).
 
Well said Lizzie, I wholeheartedly agree. It makes my chest hurt to think about the lost billions. Seriously :( I now have to try not to think about it as I am too young for more grey hairs.

I'm finding it difficult to put into words but I'm damned annoyed (to put it mildly).

Just imagine how the miner who have put in years of hard work and their own capital risking potential heavy losses to finally get to a position of good profitability to now be told its unfair for you to make so much profit. We want more then half of it.

To me it's like saying anyone who has made a decent profit from CG by investing in IP by holding on it for several years. Making sacrifices all those years to fund the negative cashflow to be told by the government. There is a 40% super capital gain tax. After you pay that whatever is remaining you apply the 50% CGT discount which everyone else gets. How annoyed would you be so see all the sacrifices over the number of years to only see the government take half of the profits.

Cheers,
Oracle.
 
So now they're going to tax hard working people who have taken huge risks to get to where they are, right??

Those dodgey batt installers and construction subcontractors who rorted the system must be laughing right now. Millionaires overnight.

I really don't like this spend more and tax later system, it's criminal. It just distributes money to those who don't deserve it.
 
There is one aspect to the mining tax that I agree with although whether it's the answer to this side of things or just what exactly is , don't know !
Maybe more the company under permit conditions in the first place must undo all the mess they make once finished , from mine itself to transportation , I don't know .

Remember , these massive companies tare up 1,000s of hec of our country , yours , mine and our childrens. They build 1000's of ks in tracks and very ugly infrastructure , ugly make shift towns , ports , 1000's of ks in ugly pipelines and make massive holes kl wide and deep all over our country.
We own this country , it's land is ours and future generations to come .
Take a good look at mining pictures if you haven't seen any yet and just see what they do to the countries earth and landscape . Not only the mining site itself but if you were to sky scan the loads and energy requirements in and out , all the way to where that product actually leaves this countries shores !

What is the answer to this stuff , I don't know but it is our land & it is our country that they make this mess in !
We get employment , taxes, exports but , if somebody comes to your house and wants to dig up and destroy your own backyard for some minerals and then your street , town and miles of down the road in and out, of into the sunset to transport those goods and to provide the means in extracting those goods from your backyard in the first place , then how much should your cut be considering ?

It's just an angle I've often thought about, as these mobs get bigger and bigger , uglier and uglier and require yet more and more resources, infrastructure to operate and set up ?
And when they've finished , what's left is as bad as a war zone for as far as the eye can see and there's 1,000s of them all over the country !

Thoughts !

Cheers
 
no industry is without impact and it's just a matter of positives and negatives. few people ever go to these far flung corners of the country anyway
 
Did you mean "progressive"? If there is any serious thought of this I could see thousands of companies being wound up and reverting to sole trader/partnership arrangements.

I reckon you would see an enormous amount of black money commence again as well.

Someone like myself; I run my businesses like large corporations - report on everything, pay myself as a proper employee and so on. I don't hide any cash.

Why? because the better the profit the business shows, the more money I can borrow from Banks using the business's income for serviceability, as well as my own wage. The more transparent my operations are, the easier it is to borrow. It's a longer term attitude for me.

The extra tax paid now by both me and the company is nominal when compared to what funds can be borrowed for other projects which will make far more money down the track; ie more property or other businesses.

But if the tax rate on profits was to become progressively higher, and looked like becoming an impediment to the nett profit as a whole, then I would have to start considering a bit of undisclosed. And this would be a widespread mentality I reckon.

Just as an aside to all this; all 3 mechanics I employ are always at me to hide cash, don't declare the punctures and so on. They regard this as being clever and ahead of the game (taxman). One is 38 and has never owned a business and doesn't look like wanting to, the other two are 48 and 62 respectively, both rent and have never owned a business. These two are broke, and the other one will work (because he will have to - it won't be a choice) until retirement. They are all following the pattern of other mechanics they have worked with and have been trained by.

A lot of tradies think this way; always wanting to do cash deals and so on. It makes me smile inwardly.

Why? because generally tradies are the same in many cases; think it's a smart ploy to hide all the cash, but are always broke (buy boats and hotted up cars etc with all their earnings), can't get loans of any decent description and never accumulate any assets, have to work in a one-man show until they drop.
 
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Just imagine how the miner who have put in years of hard work and their own capital risking potential heavy losses to finally get to a position of good profitability to now be told its unfair for you to make so much profit. We want more then half of it.

To me it's like saying anyone who has made a decent profit from CG by investing in IP by holding on it for several years. Making sacrifices all those years to fund the negative cashflow to be told by the government. There is a 40% super capital gain tax. After you pay that whatever is remaining you apply the 50% CGT discount which everyone else gets. How annoyed would you be so see all the sacrifices over the number of years to only see the government take half of the profits.

Cheers,
Oracle.
If you invested $1000 into an IP and made $ 500 profit on it , then paying 50% tax on that profit is fair enough , considering a finite resource .

Most miners would make closer to 10 % rate of return ( rio last year 16.5) in that case they don't pay 50 % tax .
With the reduction of company tax to 28 % a company on 10 % rate of return will pay similar or less tax than paying now .

The liberals also want to move company tax to 31.7%

 
If you invested $1000 into an IP and made $ 500 profit on it , then paying 50% tax on that profit is fair enough , considering a finite resource .

Most miners would make closer to 10 % rate of return ( rio last year 16.5) in that case they don't pay 50 % tax .
With the reduction of company tax to 28 % a company on 10 % rate of return will pay similar or less tax than paying now .

The liberals also want to move company tax to 31.7%


What's up with the entire post in bold? Do you think ppl at SS have problems reading with normal text?

Your stmt just shows how naive and easily some ppl can be manipulated by politicians and media who have no idea of how profits are made in mining. If most miners make close to 10% rate of return. I would love to be a miner today. Seems like everyone here who supports the RSPT thinks the miners are running the company on autopilot with guaranteed 10% rate of returns no questions asked!

Cheers,
Oracle.
 
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