Rudd-Gillard Super Tax - the Facts
The so-called Resources Super Profits Tax was recommended in the Henry Review of Taxation. It was part of a proposed package with around 138 recommendations for reform – of which only a handful were accepted by the Government. Not surprising for a Government that has incurred record debt and deficit a big, new 40% tax was adopted. It has been a policy disadter since it was announced.
The Government has struggled to explain the tax and its impacts from day 1 and it clearly isn't engaged in genuine consultation. The Government is all over the place with it’s explanations. It is said to be about taking a fair share one day then helping the mining sector grow the next day. The super tax is just that - a tax. It affects jobs in mining and the service sector; it impacts on ordinary investors, retirement savings and has flow-on impacts on the entire economy.
The fact the Government resorted to class war language - rather than explain the tax truthfully - casts doubt on its true motivation. The super tax is bad for investment, bad for jobs and bad for the economy.
This issue isn't just about a small handful of wealthy mining executives. A tax on an industry that provides hundreds of thousands of jobs and provides 48% of exports affects the whole economy. It affects all Australians and ComeOn shares the view of many economists, business leaders and working families who believe the Rudd Super Tax should be abandoned.
ComeOn was also appalled about the $38 million taxpayer funded, political advertising campaign to try to sell this tax – in a clear breach of an election promise. Saying this is a national emergency was an insult to the intelligence of everyday Australians. Labor should repay the money spent to date.
On Friday 2 July after prolonged pressure the Government announced a revised tax package claiming that everybody won and yet 90% of the revenue would be retained. Small and medium miners expressed concern they had been excluded from a process that hurt them to the benfit of international majors. The revised Minerals Resources Rent Tax has now been clouded by admission the numbers used different assumptions and forecasts than the original tax - hiding the true impact of the tax and the changes - and according to Treasury Secretary Ken Henry is now worse for jobs.
Help fight the super tax here.
But don't just take our word for it. See what other experts, commentators and families say and read our Questions and Answers. For those interested in a simple overview of how the proposed tax will apply see "A duffer's guide to the RSPT"here. As this has become a moving feast of policy, numbers and claims "on-the-run", keep up with our most recent news on our ComeOn blog.
At ComeOn we looked at what experts and commentators say - not just big mining companies or the Government.
