Henry Report

The Herald Sun also said that 'The review proposes a 40 per cent discount on all income from savings, as well as on all residential rental income and losses, and capital gains.'

I'm not exactly sure what that means or whether the government has indicated whether it will do this, but it sounds promising.


I've since discovered that the '40% discount on residential income and losses' effectively means that you could only claim negative gearing on 60% of
your interest and depreciation costs - so it wouldnt have been good news for most property investors and luckily they have ruled it out.
 
A retraction...

An estimated $5.6bn in tax over 10 years for the whole Australian mining industry. That would be "a drop in the ocean..." instead of extortion.

Well the press release I saw at the time had a little error in in - omitting the term "per year" from the $9.5bn. Turns out to be a little more significant than I thought and nowhere near the wholesale reform of the royalty scheme that is needed, rather just a new tax on top of the existing system.

On that basis alone, I'm definitely not a supporter of this, even if it does top up people's super.

The market doesn't seem to be taking it particularly seriously though...
 
The market doesn't seem to be taking it particularly seriously though...
Dunno. There would be a lot of people like me who are heavily into miners for well considered reasons who might not agree that a 3% fall is no big deal.

Personally I only have a modest holding in Santos, the only one of mine affected today. I have had a general unease about Aussie miners because I believed that there is as much sovereign risk here as there is in most other countries but having voted Labor most of my life I just never considered Rudd could do this.

We may as well ask Hugo Chavez for diplomatic advice. :mad:
 
The market doesn't seem to be taking it particularly seriously though...


Agreed.

Is it because it has to pass through the senate? So the market is giving odds of it being passed? [not much now] So if little Gough gets re-elected again resource stocks might go down the full amount they'd be due?


See ya's.
 
Well the press release I saw at the time had a little error in in - omitting the term "per year" from the $9.5bn. Turns out to be a little more significant than I thought and nowhere near the wholesale reform of the royalty scheme that is needed, rather just a new tax on top of the existing system.

On that basis alone, I'm definitely not a supporter of this, even if it does top up people's super.

Now were back on the same page....;)
 
Now were back on the same page....;)

Yes it reminds me of the ETS. A great idea if kept simple (eg just as a carbon tax / GST swap) but then our esteemed government gets their hands on it and makes an unholy mess out of it as well as a financial engineer's dream in the form of the CPRS.

Here tax reform of the mining royalty system is sorely needed to better align risk and reward between the mining companies and the Crown. Instead we get a new tax that just takes away upside without any sharing of downside pain, other than a few useless grants for exploration.

Why bother arguing for "root and branch" reform, commissioning a review that recommends sensible and rather predictable solutions, and then actually doing hardly anything except just adding a new tax to all the ones we already have?

My only issue with the Henry review recommendations is that it didn't recommend moving towards aligning personal and company tax rates. IMO there is no reason for having a difference between them and it just creates more useless work for accountants.
 
The problem with the gov debt is who is going to pay it back?
Those with wealth or those without?
What will happen is that those with wealth (of anykind) are the only people who are able to pay the tax (interest) bill.
So the next 10 yr will see the advent of even more "wealth taxes" that will be imposed on the minority middle class investors and small biz.

There's no point taxing those without money so you have to tax those who have some.
There's a reason NSW is the most taxed state, and that's because it was the biggest earner.
At the time the talk about annexing WA was cause it was an anchor to the rest of the country for decades.
Now that they can afford to pay truck drivers 150k and everybody in the mining industry is buying million $$ houses, then why would they be looking anywhere else?
Whoever is deemed to be making too much needs to cough up more taxes.
It's pretty obvious commy common sense.
And vodka is already the national drink amongst gen y...

and a few more quotes (it saves typing)
Obviously if you have no wealth, then you can't be made to pay much.
But those of us who spent decades creating wealth & income, paying taxes on everything, are now paying taxes on taxes that we already paid tax on.
It's corporate communism or fascism, where the population is either poor or very wealthy, and the middle class pays.
All this creates a contrived artificial market place that doe'snt bring a happy ending.
And I like happy ending.
 
This mining tax is outrageous. My mining stocks have crashed like crazy. I can't believe this. Watching my Atlas fall like mad. And am guessing the NCM/Lihir deal won't go through too given how horrible my NCM has now performed.
 
I wonder how Ruddy & Co's holdings are going. Maybe they all got out just in the nick of time ;)

Oh yeah, I seem to remember the PM sold all his holdings on taking office. Must have had an incling how things would turn out. Thats some big insider trading :D
 
Got some sad news for you DB. There'll be more of the same today. :(

There are no printable words which could adequately describe my disgust of Rudd. Trouble is, all the leaches in the country will think he's a jolly good fellow for giving them all that free money and then grabbing it back from the miners. He is an ideological maniac.
 
Buying

This mining tax is outrageous. My mining stocks have crashed like crazy. I can't believe this. Watching my Atlas fall like mad. And am guessing the NCM/Lihir deal won't go through too given how horrible my NCM has now performed.

Shares go up. Shares go down. Yawn.

I'm taking the chance to top up on commodities and will only sell when economic conditions and inflation level off.
 
Wow. Lots of negativity on the Commodities 40% tax. I must have a fuzzy head as I don't see it as too bad medium to long term.
I base this on the petroleum/oil industry already being taxed at this level for the same thing and I don't see them going broke or shutting shop.
And in an era of globalisation, which I believe is beneficial, inevitable and necessary, I bet we wont be the only country to run with this. Lots of companies are multinationals and these mega corporations are only going to grow in size and number, so why not retain some profits here? I cant remember the statistic but one global petroleum company had profits greater then the GDP of the USA.
I'm not knocking these companies, good luck to them and may we all live long and prosper. But why not retain some national profits?
 
i am just furious at the opportunity the government was presented with to be able to make sweeping changes to the tax system. to simplify it, to make it more equitable, to streamline it ... and all they did was whack on another tax or two.

what a complete and utter waste of time and resources.

bunch of chicken necks that they are!! :mad:
 
Wow. Lots of negativity on the Commodities 40% tax. I must have a fuzzy head as I don't see it as too bad medium to long term.
Why just tax them? We can follow the example of those other beacons of good governance Chevez, Mogabe and the sheiks and nationalise them.
 
Depends on the commodity. For something like iron ore where you're selling at say $140/t and have cash costs sub $40/t, you still make lots of money regardless. But there're some lower margin projects and these will be squeezed.
 
Back
Top