Australian Workers Lose $500 billion

MRRT to Deliver $500 Billion Boost to Australian Workers

Households and small businesses will be big beneficiaries of the Gillard Government’s critical reforms to deliver a fairer return from the nation’s non-renewable resources, boosting the super savings of Australians by $500 billion by 2035.

Legislation for the Minerals Resource Rent Tax is being finalised for introduction to parliament after more than a year of public debate and extensive consultations with industry and other stakeholders.

The MRRT will lock in the benefits of the mining boom for all Australians and help tackle the challenges posed by our patchwork economy, where different sectors are growing at different speeds and many small businesses are doing it tough.

The revenue from the MRRT will:

  • Secure a boost to the superannuation of 8.4 million workers, increasing their pool of retirement savings by $500 billion by 2035, according to the Federal Treasury;
  • Deliver a special new tax benefit for 2.7 million small businesses and a cut in company tax;
  • Fund vital infrastructure to help address capacity constraints, particularly in the nation’s fast-growing mining regions.

Where was the Treasury advice that hypothecation – linking the proceeds of a particular tax to certain expenditures – is rarely a good idea?

Another thought: if there has been no revenue from the MRRT, then there can be no breach of confidentiality when it comes to releasing the gross revenue – zero – that has been received thus far.  Bring it on.

Another thought again: If this trumped reason in respect of the disclosure of MRRT revenue is true – in theory, there are some 300 odd companies which could be liable to pay the MRRT – then the government must refuse to release any figures in respect of the PRRT, where there are far fewer companies liable to pay the tax.

 

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31 Responses to Australian Workers Lose $500 billion

  1. Grey

    I have been told the State Premiers stole it.

  2. Johno

    I have been told the State Premiers stole it.

    They didn’t steal. Swan is so stupid he gave it away.

    This man is in charge of spending one in every five dollars spent in Australia.

    Be afraid. Be very afraid.

  3. H B Bear

    Go The Goose – lock in that boom son!

  4. Elizabeth (Lizzie) B.

    $500 million. Peanuts. They’ve lost a lot more than that under Swannie’s watch and Gillard’s leadership. But who’s counting? Julia keeps on feeding the chooks who come eagerly running for her corn. Just like Hansel and Gretel, they are childishly oblivious to the dangers of such witchery.

  5. Steve of Glasshouse

    Julia’s dog ate it..Sad, I don’t even trust labour dogs

  6. H B Bear

    Lizzie – it’s $500 billion.

    You’ll never get a job writing press releases for Hamish McSporran at that rate.

    Billions are the new millions.

  7. Milton Von Smith

    Monthly PRRT figures have been publicly released since January 2000, and annual figures since inception. I guess the AFP will be instigating investigations of Hawke, Keating, Howard, Rudd and Gillard for breaching the privacy provisions of the tax code.

  8. Token

    critical reforms to deliver a fairer return

    We’ve been tolerating “fair reforms” for 100 years, and they all end up the same way.

  9. Seb

    Confidentiality would not apply to releasing the total figure without reference to individual payees.

  10. Elizabeth (Lizzie) B.

    Lizzie – it’s $500 billion.

    oops. My bad. I think I knew that if I stopped to think about it (mining tax is a big biggie after all) but millions, billions, trillions, zillions, they all sound the same at elevenses to an airhead.

  11. Bruce

    Grey – Thanks that was funny.

    ABC at lunchtime got all excited and said that temperature rise of 6 C by 2100 would burn up all koalas or something (there’s a conference on in the People’s Green Republic of North Korea Tasmania, presumably in the casino, so the ABC must do their bit for the cause).

    This is relevant to the above press release because you can carefully take note of the excited Scottish phraseology of this Government and all its various poxy organs and be confident its not going to happen.

    Never have I seen a Government which says so many meaningless words as this one. And I include the Peoples’ Mouthpiece of the ABC in this.

  12. stackja

    May be by 2035 China will own us.

  13. papachango

    Hang on – where does this $500B super increase come from? Was it from raising the minimum emploey contribution from 9 to 12%?

    If so something doesn’t smell right:

    1. are we saying this now won’t go ahead because Swannie cocked up the mining tax? Why to they need the mining tax for this – it’s employer funded

    2. well, technically it’s employee, not employer funded – as it will simply come out of take-home pay over time.

    3. So there was no $500B boost to start with – at best it was ‘workers have an additional $500B confiscated from them until they’re 60′ (I guess that bit doesn’t sound so flash in a Laybore press release)

    Or am I missing something? Was Swannie just planning to tax the evil capitalist miners more then deposit the money randomly in people’s super accounts? I’m no longer suprised at anything this lot do, so maybe that’s the case, but someone elighten me.

  14. Cambodia7

    It seems like a stupid idea to punish the sucessful to make up for the complacency and failure of the rest. It was only 12 or so years ago when every Geologist I knew was driving a taxi because they couldn’t get work. Mining has booms but also busts!

    Governments already collect royalties for the use of the land – and the land is a State government issue.

    This is typical Socialist twaddle. Why single out mining anyway? Why not burden other profitable sectors with extra taxes?

    Worst government ever.

  15. Econocrat

    I generally respect you Judith, but if you are still seriously asking where alleged “Treasury Advice” is then you need some help.
    And, if there was some, what point would it be to giving it to Swan?

  16. Rabz

    are we saying this now won’t go ahead because Swannie cocked up the mining tax? Why to they need the mining tax for this – it’s employer funded

    pap – my understanding was the 2% cut in company tax (since rescinded) was meant to offset the SGC increases.

    Remember, these increases were going to be phased in from mid 2013 (initial increase of .25%) so presumably the liberals will simply abolish it.

    However, I’m not hopeful.

  17. Rabz

    FFS, the ATO website is a f*cking shambles…

    Here’s the detail about the SGC increase.

  18. Rabz

    … my understanding was the 2% cut in company tax (since rescinded) was meant to offset the SGC increases.

    Oops – the mining tax was going to offset the 2% company tax cut.

    As usual, things didn’t quite work out as planned.

    Imbeciles.

  19. H B Bear

    Treasury advice can probably now be put to the same use as Productivity Commission Reports by Barnaby Joyce.

  20. Econocrat

    You do realise that the MRRT revenue offsetting the cost of the SGC increase is merely offsetting the loss in revenue to the Government from salary and wages income going into super at 15 per cent, not at marginal tax rates? That is, it goes to the CRF!

    The “cost” of the increase is paid by employers and employees.

  21. Rabz

    The “cost” of the increase is paid by employers and employees.

    Yes, I’m aware of that, the goose obviously isn’t.

  22. Skuter

    It was all conflated together in order to make the wukkas think the ‘benefits’ of the mining boom were being ‘spread’ to them via their benevolent overlords…

  23. duncanm

    oops. My bad. I think I knew that if I stopped to think about it (mining tax is a big biggie after all) but millions, billions, trillions, zillions, they all sound the same at elevenses to an airhead.

    I just thought you were channeling Swannie.

  24. Quentin George

    I have been told the State Premiers stole it.

    Minerals belong to the states. Luckily we have averted the theft by a profligate Federal government enabling the states, with their spiraling health and infrastructure costs to hang on to their much needed revenue.

  25. Dan

    Minerals belong to the states.

    Not so

    The Queensland Minerals Resources Act states:

    All minerals lawfully mined under the authority of a mining lease cease to be the property of the Crown or person who had property therein and become the property of the holder of the mining lease subject however to the rights to royalty payments under this Act of the Crown or any other person.

  26. Sinclair Davidson

    Minerals in the ground belong to the states, once mined they belong to the miner.

  27. John Mc

    Wow, unexpected from the layman’s perspective.

    “Mr Wendt said the Mozambique project was taking much longer than planned and major companies such as Rio were realising the difficulties involved in doing business outside Australia.

    ‘It puts some of this whole political risk talk in Australia in perspective,’ he said.”

    Food for thought (with a grain of salt) I suppose.

  28. Quentin George

    Minerals in the ground belong to the states, once mined they belong to the miner.

    Well, yeah. But they never belong to the Federal Government, or “all Australians” (whatever that means).

  29. Dan

    Sinclair, wasn’t that part of the conjecture of some contributions to that post, once mined or once the tenement has been established as per Mr Hissink’s contribution

    We (the miners) own the minerals (as specified in the lease document) once that lease is granted. However, if the lease is surrendered or expires, the minerals (below a certain depth) revert back to the state. Owner ship starts from grant, not from production further down the flow chart.

    Or has everything changed?

  30. Elizabeth (Lizzie) B.

    It puts some of this whole political risk talk in Australia in perspective,’ he said.”

    I’d call it hedging bets. That’s what I’d do in their situation.

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