Edited 22 May 2019 02:46, 2 years ago, edited by Radioman

Hello RTT Rules and others,

Correction, Bill Shorten did clearly say during the Election Campaign, and live on the TV News Ch 7, 9, & 2 , that the Adani mine would go ahead if it secured the necessary regulatory approvals and finance. At the time of his statement, the environmental approval from the Qld Govt was delayed due to the submitted plan to protect endangered wildlife and a water cleansing process needing to be improved. I am not quite sure what other comment was appropriate, given that final approvals had not been reached, and given that as Opposition Leader during a general election, Bill Shorten was not in a position to say anything else. ( Nor, for that matter, was Scott Morrison, for exactly the same reasons. )

Regarding the so called Tax Increases, relating to negative gearing and capital gains tax exemptions, they were actually a reduction, not removal, of an existing set of tax concessions that would apply after 1st July 2019, with existing rates of exemption grandfathered until they expired ( which , with the passage of time, they constantly do, due to the concessions being of a transitory nature ) . According to the Commonwealth Treasury, the concessions currently represent $800M pa in foregone revenue, and it is anticipated to pass the $1B pa mark in the next 6 years. Realistically, this is unsustainable, at some point these tax concessions will need to be reduced or abolished , otherwise the Commonwealth Government will not have the revenue to fund health and social security , which costs are expanding due to an ageing population and a corresponding reduction in the percentage of taxpayers who actually pay tax.These two categories make up the bulk of Commonwealth expenditure.

Another way of looking at this issue is what alternatives are there to allow this rapidly growing tax exemptions to continue ? One possibility is to reduce the amount of payments the Commonwealth passes onto the States, less Commonwealth money, therefore less State Grants . What revenue raising measure can the States utilize that the Commonwealth has no legislative power over ? One choice is Land and Property taxes. Historically, State Parliaments implemented Land Tax partially to prevent a small number of people being able to purchase and hold vast land tracts to the detriment of other residents . ( They were not citizens then, but British Subjects living in a Crown Colony. Which remained the case until the passage of the Nationality and Citizenship Act, 1948. ) In this sense, the effect of Land Tax is to ensure that land is available for residents to purchase, as well as help fund the State Government. As taxes are not a tax deduction, the rates of land tax could be adjusted to accomodate the fall in Commonwealth revenue, and there is not much the Commonwealth can do about it.

Whilst the late High Court Judge, and former Commonwealth Parliamentarian and Cabinet Minister, Sir Garfield Barwick, said words to the effect that paying tax is a legal requirement and not an obligation; the reality is that Governments require revenue to provide collective services, and this is primarily some form of taxation, which residents and organisations need to pay to enable this to happen.

One persons tax deduction is covered by other peoples tax payments. One company's reduced tax liability ( often close to zero ) is covered by other companies and other individuals. Yes, mining companies for example pay Royalties , this is not the same as paying Company Tax . Minerals belong to the Crown ( ie, all of us collectively ), and a Royalty is a payment for permission to mine, which is not the same a Company Tax, which is a proportion of Net Revenue After Deductions that companies are liable to pay ( or not, if the company can establish a financial structure that conveniently avoids a Company Tax Liability )

Regards, Radioman.

Edited 22 May 2019 02:43, 2 years ago, edited by Radioman

Hello RTT Rules and others,

Correction, Bill Shorten did clearly say during the Election Campaign, and live on the TV News Ch 7, 7, & 2 , that the Adani mine would go ahead if it secured the necessary regulatory approvals and finance. At the time of his statement, the environmental approval from the Qld Govt was delayed due to the submitted plan to protect endangered wildlife and a water cleansing process needing to be improved. I am not quite sure what other comment was appropriate, given that final approvals had not been reached, and given that as Opposition Leader during a general election, Bill Shorten was not in a position to say anything else. ( Nor, for that matter, was Scott Morrison, for exactly the same reasons. )

Regarding the so called Tax Increases, relating to negative gearing and capital gains tax exemptions, they were actually a reduction, not removal, of an existing set of tax concessions that would apply after 1st July 2019, with existing rates of exemption grandfathered until they expired ( which , with the passage of time, they constantly do, due to the concessions being of a transitory nature ) . According to the Commonwealth Treasury, the concessions currently represent $800M pa in foregone revenue, and it is anticipated to pass the $1B pa mark in the next 6 years. Realistically, this is unsustainable, at some point these tax concessions will need to be reduced or abolished , otherwise the Commonwealth Government will not have the revenue to fund health and social security , which costs are expanding due to an ageing population and a corresponding reduction in the percentage of taxpayers who actually pay tax.These two categories make up the bulk of Commonwealth expenditure.

Another way of looking at this issue is what alternatives are there to allow this rapidly growing tax exemptions to continue ? One possibility is to reduce the amount of payments the Commonwealth passes onto the States, less Commonwealth money, therefore less State Grants . What revenue raising measure can the States utilize that the Commonwealth has no legislative power over ? One choice is Land and Property taxes. Historically, State Parliaments implemented Land Tax partially to prevent a small number of people being able to purchase and hold vast land tracts to the detriment of other residents . ( They were not citizens then, but British Subjects living in a Crown Colony. Which remained the case until the passage of the Nationality and Citizenship Act, 1948. ) In this sense, the effect of Land Tax is to ensure that land is available for residents to purchase, as well as help fund the State Government. As taxes are not a tax deduction, the rates of land tax could be adjusted to accomodate the fall in Commonwealth revenue, and there is not much the Commonwealth can do about it.

Whilst the late High Court Judge, and former Commonwealth Parliamentarian and Cabinet Minister, Sir Garfield Barwick, said words to the effect that paying tax is a legal requirement and not an obligation; the reality is that Governments require revenue to provide collective services, and this is primarily some form of taxation, which residents and organisations need to pay to enable this to happen.

One persons tax deduction is covered by other peoples tax payments. One company's reduced tax liability ( often close to zero ) is covered by other companies and other individuals. Yes, mining companies for example pay Royalties , this is not the same as paying Company Tax . Minerals belong to the Crown ( ie, all of us collectively ), and a Royalty is a payment for permission to mine, which is not the same a Company Tax, which is a proportion of Net Revenue After Deductions that companies are liable to pay ( or not, if the company can establish a financial structure that conveniently avoids a Company Tax Liability )

Regards, Radioman.