Henry Tax Review

After two years in the making and after sitting on the thing for almost 5 months we finally have the Rudd Government response to the Henry Review: tax the hell out of mining companies.

The Rudd Government’s revolutionary proposal following the release of the Henry Tax Review yesterday is pretty astounding in its lack of vision.

It’s not so much a “root and branch” overhaul of the tax system as it is a rocks and dirt one.

Continue reading "No hooray for Henry" »

The mining sector might have protected us from the harshest winds of the Global Financial Crisis, but according to Kevin Rudd and Wayne Swan it’s no longer just making profits - it’s making “super profits”.

Ergo, these “super profits” can be “super taxed”.

It’s hard to argue with a “super” anything in a rhetorical war, which the Government is well and truly waging right now with the Opposition. By creating the narrative that the miners are so far in the black they qualify for a whole new category all of their own, it’s easier to gouge them.

Continue reading "Rudd’s created a “super” enemy, Abbott’s got a GBNT*" »

The Henry Tax Review has been released and the Rudd Government has formed its response. So what good things has the government done for the average Australian family? Not a great deal.

I know it’s a brash statement but when you think about it, the Henry Review is some 800 pages long, looking at things like housing affordability, childcare and family assistance. These are the things which families really care about because they are the biggest items which chew into the family budget and affect whether they have any spare cash or not.

But were any of these things mentioned in the Rudd Government’s response to the review which it’s been sitting on for months? The short answer is no.

Continue reading "Henry: By going after the big guys, little guys will get hurt" »

Four months after the federal government received Ken Henry’s recommendations for tax reform we still don’t have a clear indication of what that reform might look like.

While the Henry Review unquestionably provides a long term agenda for reform, overall the lack of intent and guidance around the government’s thinking is frustrating.

There is no doubt that Australia needs a simpler, more efficient taxation system.

Continue reading "Henry did his job, but Rudd’s hardly gone near it" »

We’ll chart the reaction to the Henry tax review and the government’s response here as it unfolds. All times are AEST. Refresh the page for updates.

2:30 Live blog on the Daily Telegraph now with leading accountant Anthony Bell.

2:00 Wayne Swan’s interview on 2GB this morning has ended in a clash with 2GB host Ray Hadley listen here.

11:00 The Australian is reporting that Treasurer Wayne Swan has left the door open to adopting more review recommendations in the federal budget next week.

10.25am: The miners have copped it on the share market this morning. According to AAP on opening this morning: BHP Billiton was down $1.50, or 3.68 per cent, at $39.25 while Rio Tinto was down $3.79, or 5.26 per cent, at $68.31. Fortescue Metals Group fell 18 cents or 3.93 per cent, at $4.40 and gold miner Newcrest slipped $1.13, or 3.41 per cent, to $31.96.

10.22am: Joe Hockey’s on Brisbane radio 4BC right now. You can listen here.

10.05am: South Australian treasurer Kevin Foley reckons it’s a win for the mining companies. His comments are here on AdelaideNow.

9.49am: From ABC reporter Simon Cullen on Twitter: “Abbott says Rudd’s tax response is a bit of “political jiggery-pokery”... not sure how to spell that one…”

9.42am: Wayne Swan will be taking questions from readers in a live online Q&A at the Herald Sun this morning from 10am here.

9.41am: Kevin Rudd’s going to march this morning in the Brisbane Labour Day parade. Am guessing he won’t want to get too close to the guys from the CFMEU.

9.18am: Choice reader comment from Adam:

I can see Swan reading the report…
Blah Blah Blah. Wow, mining can be taxed into oblivion. Thanks Henry.
Henry: What about the rest?
Swan: The what?

8.56am: More from Kochie ... the Sunrise host has been calling the government’s response “wimpy”. In a column for News Ltd papers today he elaborates on his view.

I suppose we should have all known this would happen. This was meant to be the tax version of the 2020 Summit. Nothing has come of that either.

8.54am: What the nation is reading... Well, it’s early days yet, ultimately it means very little and the Henry review wash-up will no doubt build interest as the day unfolds. But still, at The Australian:

and at news.com.au:

We’re on this story too: Punch fashion writer Nedahl Stelio has our coverage of the Logies red carpet here.

Continue reading "Live blog: Reaction to the Henry review as it happens" »

South Australia stands at the edge of a potential golden era, a golden era of opportunity like the state has never seen before.

It turns out that South Australia sits on a giant bed of yellow cake that, if managed properly, will drive the state for generations.  As China and India continue to grow at nearly 10% per year with no sign of stopping soon, their insatiable appetite for energy resources grows along with it.

For instance between now and 2050 China will require an additional terawatt of power just to sustain their current levels of growth.  Given the desire to build emission free power plants, uranium is in high demand as a fuel of choice around the world particularly amongst developing countries.

Continue reading "The dambusters: tax review’s threat to mining" »