Does anyone have the details of the implementation of this? It passed the senate overnight.

AFAIK from digging around the web this morning:

- big new tax on mining
- background company tax eventually goes to 28% from 30
- super to lift from 9% to 12%
- vague tax breaks for small business. Any detail?!
- new infrastructure spending

The issue I have is the super changes - a package sold as a helping hand for small business is probably going to just cost my company thousands in extra super and move us closer to the line where we give it up and let everyone go.

Small business in 2012 is likely to be family trust / corporate trustee structured and get negligible benefit from the company tax changes, unless the primary beneficiaries are pulling more than 50-60k and the extra profit is declared via the corporate trustee.

Even if the company is a traditional structure and the owners/directors are employees, unless they are making significant profits above their wages then the savings will be negligible - but that extra 3% on the wages bill will be due every month for every employee.

Is there something I'm missing here, because this small business owner sees little to cheer about here, and certainly nothing to provide any relief. The 33% higher super is always payable, while struggling businesses only get the tax relief if they are making significant profits! FYI Gubment, struggling businesses aren't making lots of profits ><

Why they just couldn't reduce GST payments for small operators by 2% I don't know, that would have actually offset the new super costs.

haha ^

but yeah the super thing was interesting, it *sounded* like the mining tax would government fund the extra 3% super contrib - but in reality the employer just pays it

quite strange. I know my father in law's trucking company is not looking forward to it, 3% is a bit of a hit

All problems can be solved by banning or taxing it.

Hooray for the government stealing money from profitable companies, that will surely bring international investors into Australia and help build these companies further and provide excellent, well paying employement. Employment that will see plenty of that moeny go to Australian retailers.

O wait?

Heaven forbid the people of a country get something back from the nonrenewable resources being extracted from it.

Do you have a super account? What % of that is in Australian shares? Do you think the underperformance of the Australian sharemarket is in your best interests?

Face it bro, Australians where already getting benefit from the resources in the ground, we got all we have so far without a rent resources mining tax thingy.


edit. From an ABC News article:

"I mean the Opposition are telling Australians that they believe that the profits of wealthy miners is more important than the superannuation of working Australians."

Bob Brown said that. The profits of wealthy miners are heavily linked to the superannuation of working Australians via super fund investment into wealthy miners... By taxing the miners you are indirectly taxing super.

last edited by Tollaz0r! at 09:37:01 20/Mar/12

While I don't necessarily agree with how it is being redistributed, (the super thing is over the space of the next 7 years and doesn't seem to be directly related to the Mining tax for one) I do agree with the tax in principle. Especially after seeing the large international mining companies coming over and buying leases from Aus owned companies for a song. My only first hand experiece with this is the coal seam gas leases in QLD though.

And I can't see this hampering international investment at all. Only got to look at Inpex up in Darwin for starters, if it would stifle profits/investments that much, there is no way they would have just signed off on the amount of infrastructure going to be built there under the cloud of a possible tax.

Royalty % has fallen dramatically with the increase commodity prices of most resources over the last few years. Why should scarcity increase and profits increase but the amount given back to the states/nation decrease?

Do you have a super account? What % of that is in Australian shares? Do you think the underperformance of the Australian sharemarket is in your best interests?

Yes my super that's invested in shares probably has an ASX200 portfolio which includes some mining companies.

That means my super is also has banking profits, by that logic its beneficial for me to support banks increasing interest rates by more than the reserve bank and charging exit fees etc.

Hooray for the government stealing money from profitable companies, that will surely bring international investors into Australia and help build these companies further and provide excellent, well paying employement.

It will not deter investment at all. The resources are there, they are still going to make massive profits.

The Mining Tax will cost Jobs.

Im a Mining Company and Im looking at starting a Mine.
In South America i can make XX million
In Australia I can make X million
Where am i going to Mine ?

I really hate to bark up a tree but to be honest Faceman you know fuck'all about mining globally as far as business cost. Let me just say that if you want to open a mine in Asia and Africa (which is now booming in mining) you have to relinquish up to 51% of equity to the Federal and Local Govts of the country you're mining in. In Australia we don't do this. We have, by far, a far more rewarding system to the miner in Australia than most countries involved heavily in mining.

Not once has the approach taken by these Governments affected investment in these countries, nor will the MRRT in Australia. Miners are still making more profit off an Australian Mine than an Asian Mine/African mine. To some extent the same goes for Sth America.

How is that

Wrong.

I start selling from the mine to China for Cheaper than the Australian Mine can sell for, what happens to the Australian Mine ?

This doesn't happen nor will it with an MRRT as we are exceptionally efficient miners. Again you fail to understand the Mining Business and it's methods/practices on a global scale.

This Mining Tax is retarded and will hurt Australia.

I tend to laugh at this hysterical bullshit.

I'd be pretty happy to have my wage decreased to increase my super. If its staggered at .5% increase every year until 12% then it will be quite negligible to me. Since I'd be paying 37% tax on that money anyway It would only be a decrease of 1.9% in take home pay.

I wouldn't mind paying 12% super IF you where able to use it to purchase your first home.

If the house is sold before the retirement age 65 going on 67 ? Now, you are required via mandatory stamp duty whatever that the super funds are put back in.

Australians need stable housing arrangements that aren't at the hands of greedy investors, and what better way than to have a high owner occupancy rate.

I'd be pretty happy to have my wage decreased to increase my super. If its staggered at .5% increase every year until 12% then it will be quite negligible to me. Since I'd be paying 37% tax on that money anyway It would only be a decrease of 1.9% in take home pay.

Well the thing is that the market will eventually sort it out so that this happens anyway, increases to super basically depress base rate rises.

I wouldn't mind paying 12% super IF you where able to use it to purchase your first home.

If the house is sold before the retirement age 65 going on 67 ? Now, you are required via mandatory stamp duty whatever that the super funds are put back in.

Australians need stable housing arrangements that aren't at the hands of greedy investors, and what better way than to have a high owner occupancy rate.

You had me until the 'greedy investors' thing. Investment is not evil.

Australians need stable housing arrangements

What's unstable about housing at the moment? What is so special about housing that it needs to be stable as compared to other forms of investments?

who says a tiered tax rates for individuals is fine? the GST is not tiered.

Companies don't have a tax free threshold though, so your argument sort of falls apart there.

who says a tiered tax rates for individuals is fine? the GST is not tiered.

Who says regressive taxation is fine?