"Super" Mining Tax

[Psyber]

... It seems the anti-tax lobby on here have gone quiet?

I think the issue has died and everyone has moved on.
I don't own any Fortescue either..

[fish]

Just out of interest, what is the problem with having a "two speed" economy?

[Sky Pilot]

Fortescue Mining - record profit

Hang on, isn't that "Twiggy" Forrest's company. You know, the bloke who put on miner's clothes to address the anti -tax rally, saying they'd all go broke and everyone would lose their jobs?

Some believed him

Oh, hang on again. He'll probably be disqualified from being a company director.....

It seems the anti-tax lobby on here have gone quiet?

this is a single entity so lets get the grammar correct

[redandblack]

I'm not sure where the grammar is incorrect in my 5 sentences, SP?

Of course, like all of us, I make grammatical errors often, although not as often as many.

In your one sentence, though, it's usual to start a sentence with a full stop and begin it with a capital.

Oh, I should also say an apostrophe in 'lets' wouldn't go astray

PS: Edit - a comma after entity would also help

[dedja]

wEll picKed, up R&B

[redandblack]

wEll picKed, up R&B

Nice, dedja, all correct

[Leaping Lindner]

“A member of the Government, a swinging voter, and Andrew Forrest are sitting at a table with a plate of a dozen pies in the middle of it. Forrest takes 11 pies, turns to the swinging voter, and says, ‘Watch out for that Government guy. He wants a piece of your pie.’"

[mick]

A great many Australians who are not rich hold shares indirectly in mining companies through Supeannuation. The government wants people to at least partially look after themeselves when they retire, super contributions made by employers are taxed, depending on what fund you are in there can be additional taxation on the way out, superannuation returns will fall with a super mining tax, less money for supeannuants more tax payer funds for increased aged pension payments. Ideally such a tax should only apply to the dividends of rich individuals rather that institutional investors who represent superannuation funds.

I've put a fair amount away for my retirement, both my own after tax contributions as well as the compulsory employer contributions. In all liklihood I won't need or be elligible for the aged pension. This is an old chestnut, but the ALP has a penchant for punishing those who make provision for themselves.....or they are collateral damage through their "reforms". When I access my super in the next couple of years the government will take at least 10% of my nest egg in tax equivalent to a years current salary ....fair enough, but they now want a share of the future returns as well.

It is likely that if the super mining tax is implemented a "super banking tax" will follow. I can't wait for the next election there are a hell of a lot of us aged 50-60 nearing retirement and we all vote.

[redandblack]

mick, the Liberal Party vote already comes mainly from older people and rural people.

Superannuation concessions already cost the Government $31 billion dollars a year, so I'm not sure I join your crocodile tears on this (and yes, as an accountant I do know what I'm talking about here).

The Mining Tax protests were a great example of the ordinary voter being totally 'snowed' under the weight of the mining companies campaign.

For goodness sake, we had Australia's richest people donning mining cdlothes and saying they'd go broke if they had to pay tax on their 'extra' profits.

People fell for it.

Give us a break.

PS: LL's summary is pretty accurate.

[mick]

I know lots of accountants R&B I've never met one sympathetic to the left side of politics, so you are in a minority group, perhaps there is a government grant in it for you Why shouldn't the government kick in for the superannuation? it will save them money in the long term, wasn't that the reason Hawke/Keating instituted the employer based super in the first place?

You are right a majority of older people do vote for the coalition and we have an increasingly aging population, but it only needs a few percent of that demographic to change their vote... as I said I can't wait for the next election.

[once_were_warriors]

My viewpoint:

All companies should have the same applicable tax rates , regardless of their profitability.

To impose additional tax contributions upon a buisness or industry due to their recording of excessive profits ,outside of the tax system is routinely unfair.

The input of Government monies for the upgrading of infrastructure that have only a net benifit purely for one sector or company and not to the benifit of all industries or the public is what should be questioned and whether the contributions of the mining sector (for example) to this infrastructure is sufficient.

[redandblack]

I'm used to being in a minority group, mick.

I barrack for West Adelaide

I've never subscribed to the view that the majority are necessarily correct in all things, so you'll excuse me if I don't agree with you on that.

As for not being a right-wing accountant, I can only breathe a sigh of relief.

On the superannuation issue, the vast bulk of the $31 billion cost to taxpayers was to subsidise those poor taxpayers who could afford to bung in hundreds of thousands of dollars a year. I'm nowhere near thast category, but if you support those sort of tax deductions, then you're rightly voting Liberal.

I also note that nobody wants to revisit the topic of this thread, the mining tax.

I think that's another one you've lost.

[Psyber]

mick, the Liberal Party vote already comes mainly from older people and rural people.
Superannuation concessions already cost the Government $31 billion dollars a year, so I'm not sure I join your crocodile tears on this (and yes, as an accountant I do know what I'm talking about here).
The Mining Tax protests were a great example of the ordinary voter being totally 'snowed' under the weight of the mining companies campaign.
For goodness sake, we had Australia's richest people donning mining cdlothes and saying they'd go broke if they had to pay tax on their 'extra' profits.
People fell for it.
Give us a break.
PS: LL's summary is pretty accurate.

R&B, Did you ever work for Gamble Ryan and partners?
Your overall tone rather than this specific post made me wonder..

I used to go to John Gamble and was happy with him, but as the firm grew he handed my relatively small file to a then junior, who had just left the ATO, and John assured me "knows the Act well"..
I gradually concluded this employee still worked for the ATO at heart, and was more interested in pleasing the ATO than me the paying client.
So, after pressuring John to fix things a few times, I pointed out that I was insured for audit, but not for paying tax I didn't legally need to, and moved on.

That's why my accountancy work is now still done in Melbourne by an accountant, who works to ensure I pay no more tax that the actual legal requirement, and doesn't treat it as a moral issue..

[redandblack]

Sorry to disappoint you in your sad attempt to denigrate, mate.

No, I've never worked for them.

[Mythical Creature]

A great many Australians who are not rich hold shares indirectly in mining companies through Supeannuation. The government wants people to at least partially look after themeselves when they retire, super contributions made by employers are taxed, depending on what fund you are in there can be additional taxation on the way out, superannuation returns will fall with a super mining tax, less money for supeannuants more tax payer funds for increased aged pension payments. Ideally such a tax should only apply to the dividends of rich individuals rather that institutional investors who represent superannuation funds.

I've put a fair amount away for my retirement, both my own after tax contributions as well as the compulsory employer contributions. In all liklihood I won't need or be elligible for the aged pension. This is an old chestnut, but the ALP has a penchant for punishing those who make provision for themselves.....or they are collateral damage through their "reforms". When I access my super in the next couple of years the government will take at least 10% of my nest egg in tax equivalent to a years current salary ....fair enough, but they now want a share of the future returns as well.It is likely that if the super mining tax is implemented a "super banking tax" will follow. I can't wait for the next election there are a hell of a lot of us aged 50-60 nearing retirement and we all vote.

Could you clarify what you mean by this please?

[mick]

I'm in an untaxed fund, so I'm taxed on exiting the fund, except for my own after tax contributions which are tax free, it works out to roughly 10 -12% of the total, as the taxable part is taxed at 15%....no problems as I expected this, the super mining tax will reduce super/income stream returns, so in reality is an extra de facto tax on superannuation that will affect millions of working Australians and self funded or semi self-funded retirees.

[Mythical Creature]

I'm in an untaxed fund, so I'm taxed on exiting the fund, except for my own after tax contributions which are tax free, it works out to roughly 10 -12% of the total, as the taxable part is taxed at 15%....no problems as I expected this, the super mining tax will reduce super/income stream returns, so in reality is an extra de facto tax on superannuation that will affect millions of working Australians and self funded or semi self-funded retirees.

MTAA Super??

[fish]

Meanwhile nobody has answered this yet:

Just out of interest, what is the problem with having a "two speed" economy?

[Bat Pad]

Meanwhile nobody has answered this yet:

Just out of interest, what is the problem with having a "two speed" economy?

As in the rich getting richer and the poorer getting poorer?

[mick]

I'm in an untaxed fund, so I'm taxed on exiting the fund, except for my own after tax contributions which are tax free, it works out to roughly 10 -12% of the total, as the taxable part is taxed at 15%....no problems as I expected this, the super mining tax will reduce super/income stream returns, so in reality is an extra de facto tax on superannuation that will affect millions of working Australians and self funded or semi self-funded retirees.

MTAA Super??

No its a defined benefit scheme I put in 6% post tax and the employer puts in 16.3%. It is an industry fund, so the fees are bugger all.