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Tag: Tax

24/04/2022

Huge Corporate Rort with Petroleum Resource Rent Tax

24 April 2022

Foreign companies are paying no tax due to deficiencies in the Petroleum Resource Rent Tax (PRRT). You may recall that the Rudd government tried to bring in a realistic tax based on the one that they have in Norway with a sovereign wealth fund set up to tide the country over a rainy day (like a COVID epidemic perhaps). The extent of the tax avoided is currently 13% of GDP!

Rudd was targeted by a combination of the miners and Murdoch, who he was trying to stop getting a virtual monopoly of the Australian media.

When Rudd fell, Gillard came in and introduced an alternative tax, which allowed her to save face, but one commentator some time later noted that the increase in miners’ profits that year was almost exactly what Rudd’s tax would have raised, and the new tax raised almost nothing. It was also said that the Tax Office had not modelled the new tax, and it came from the miners. This fits the theory that it was a face-saver so that Australians would still think that the government was actually in control.

Here we are a few years later, with a whole election debate is about tax, tax cuts, handouts and the cost of living, yet neither of the major parties have the guts to call out the real tax avoiders, who actually changed the legislation in their favour. The Greens do and for that they are called radical lefties!

The government takes credit for the COVID bounce-back recovery, which has nothing to do with their policies, and for the low unemployment rate which relates to the lack of backpackers and students, who usually do the dirtiest and least safe jobs for sub-award wages, not to mention the definition of ‘employment‘ as having at least one hour of work a week. The claimed 4% unemployment rate is actually a bad joke.

Here is an article in Crikey from Bernard Keane:

www.crikey.com.au/2022/04/20/prrt-could-be-biggest-theft-in-history/

10/02/2022

Religious Discrimination Bill Dies- What about the Tax-Exemption?

10 February 2022

We note that the Morrison government despite a somewhat Pyrrhic victory in the lower house after an all-night session has sent the Religious Discrimination Bill to a Senate Committee, which will push it to after the election and kill it off. This bill was promised by Morrison presumably to keep his religious right happy after the Marriage Equality bill was forced on the Liberals after the national referendum result.

There is no real evidence that religious people are discriminated against. They have tax-exempt status and are hugely over-represented in Cabinet at both Federal and NSW State level. (I do not know about the other States). They seem to that they have the right to prosthetise in door to door situations and even if they are occasionally abused in these invasive situations think the notion that they have the right be there persists, like tolerance for pesky door to door salespersons.

My own experience of being forced to go to religious ceremonies at boarding schools stuck with me. They knew that if it was voluntary the congregation would have declined by at least 95%, but they did not care. In Parliament, proceedings opened with the Lord’s Prayer. As an atheist since school I found this offensive and did not go in until it was over. Lee Rhiannon from the Greens was the same. I assumed it had always been there but in fact Fred Nile had introduced it only a decade or so before. So the idea that religion is in danger of being suppressed in Australia seems absurd to me. They already have too much power.

Far more significant is the historic tax exemption for religious organisations, however new or venal they may be. As Jesus is quoted in Mark 17:12 “Render to Caesar the things that are Caesar’s, and to God the things that are God’s.” It seems that his is one of those texts that are not acted on.

I cannot say it better than The Shovel.

www.theshovel.com.au/2022/02/10/discrimination-religious-groups-taxation/?fbclid=IwAR3dlW-c3ESEBlrRM-cOw5brJT8nmfR7ywItqsgpYJJPZMp54u1e_-75Zv4

05/04/2021

The IMF suggests taxing those who have benefited from the COVID pandemic.

4 April 2021

So I guess that would be the companies that had just a part of their organisation drop 30% in turnover for a short period, and then claimed for the whole company for a long time- the people mentioned in Michael West’s article yesterday. Here is the article below from the SMH today. And yes, it is the IMF, hardly a Leftie organisation suggesting this, though the Greens did also.

Tax those who prospered during pandemic to repair budget: IMF

Shane Wright, 4 April 2021

Sydney Morning Herald, Senior economics correspondent

The International Monetary Fund has urged nations to consider using the Abbott government’s temporary budget repair levy to overcome the huge deficits left by the coronavirus recession, warning deep cuts to spending could lead to political instability.

Amid predictions Australia’s budget deficit could be $50 billion less than feared, the IMF has also suggested taxes on “excess” profits such as the abandoned mining resource rent tax.

Governments around the world have all been forced to run huge deficits to deal with the COVID-19 outbreak, with collective deficits approaching 13 per cent of global GDP. Australia’s deficit, forecast to reach $197.9 billion this financial year, is close to 10 per cent of GDP.

The IMF, in its fiscal monitor report ahead of this week’s world economic outlook, said that while governments had been forced to run large deficits there had also been an increase in income and wealth inequality because of the pandemic.

It said governments faced difficult decisions on how to cover their large deficits while also not exacerbating inequality.

Among budget repair options, the IMF said those nations with “robust tax systems” could look to increase top personal income tax rates, similar to the budget repair levy put in place by the Abbott government in 2014.

“Temporary increases in personal income tax rates (often restricted to the highest income brackets) were previously introduced during exceptional circumstances in Germany, Australia and Japan,” it said.

The budget repair levy, which was a 2 per cent impost on people earning more than $180,000 a year, ran between 2014 and 2017, raising more than $3 billion to help reduce the budget deficit.

The IMF said another option was to tax so-called “economic rents” or super-profits, targeting those sectors that had done well during the pandemic.

“Taxes on ‘excess’ profits, either in addition to or instead of the regular corporate income tax, can assure a contribution from businesses that prosper during the crisis (such as some pharmaceutical and highly digitalised businesses) and not affect companies (and their workers) otherwise earning minimal profits or incurring losses,” it said.

The fund warned trying to repair budgets by cutting expenditure on services or support to those left behind by growing inequality could lead to substantial political problems.

The Morrison government has pledged not to increase taxes, as the Abbott government pledged ahead of the 2013 election.

Very high iron ore prices, strong GST returns and a better-thanexpected economy are already reducing the budget deficit.

Deutsche Bank economist Phil Odonaghoe said it was not inconceivable the deficit could be half of what had been predicted in the mid-year update.

He cautioned everything would have to go right for that to occur, which would result in a deficit of about $100 billion. Even that would still be a record budget shortfall.

Mr Odonaghoe said a deficit of about $150 billion was more likely, which would set up the budget for future years. “The better starting point in 2020-21 also means smaller deficits across the forward projection period. On our revised profile, the federal budget could conceivably return to balance by 2025-26,” he said.

ANZ economists Hayden Dimes and David Plank said the deficit would be as low as $155 billion because of the better expected economic conditions.

But they cautioned some of this improvement was due to GST receipts.

Due to the way the GST is refunded to the states and territories, the better revenue this financial year could end up a shortfall in 2021-22.