http://www.abc.net.au/news/stories/2010 ... 888088.htm
Naturally Abbott has called it a great big tax. Now Abbott and some of the constituents he targets are fucking morons anyway, of course its a tax. But the point of contention is, is it unfair, does it benefit the country etc. But nooo, just throw in those words like some holy mantra for the instant win. I mean Abbott calls finds it uneasy that people are increasing taxes on cigarettes on the grounds that its a tax. He grudglingly concedes that there are some health benefits to it (duh) and so won't oppose it. Strangely he won't apply the logic to taxes on alcohol.Mining boom to pay for super revolution
By online political correspondent Emma Rodgers
Updated 2 hours 7 minutes ago
Millions of Australians are set to reap higher retirement savings, funded by a tax on miners, as the Federal Government makes major changes to the country's superannuation system.
The Federal Government today revealed in its much-anticipated response to the Henry tax review that it will lift compulsory superannuation contributions from 9 to 12 per cent by 2020.
The Government's move to increase compulsory superannuation goes against the Henry review recommendations, which instead preferred changing the rate of tax on compulsory contributions to make the system more equitable.
Key points of today's announcement include:
* Lifting compulsory superannuation from 9 to 12 per cent by 2019-20
* More Government payments for low-income workers into their superannuation
* Compulsory super payments for those over 70 and concessions on contributions for those over 50
* A reduction in company tax from 30 to 28 per cent by 2015
* Small business to benefit from company tax cut from 2012
* Other write-off concessions for small business
* Miners to be hit with a 40 per cent tax on above normal profits
* An infrastructure fund to be paid to the states each year to start at $700 million in 2012
Unveiling the Government's response, Treasurer Wayne Swan described the announced changes as historic.
"These are very big steps in a decade-long process of reform," he said.
"We've chosen to build everyone up rather than rearrange the tax concessions."
The country's mining boom will be used to help fund the superannuation overhaul with the resources sector to be slugged with a 40 per cent tax on profits.
Mr Swan warned the Opposition that if they blocked the tax on mining profits they would be blocking the increase in compulsory superannuation.
"This is only doable if it can be funded," he said.
"There are big gains to come from these reforms we have announced today."
Prime Minister Kevin Rudd said the superannuation increase would deliver more security for people as they age.
"This plan means that working families of the future will have to worry less about their retirement," he said.
The increase in compulsory superannuation is part of several changes the Government will implement to the system in an effort to prepare the country for the costs of a growing and ageing population.
While the mining industry is set for pain, small businesses will make gains through a company tax reduction, a cut in red tape and other concessions.
But the Government is yet to reveal how it may act on other changes that were expected, such as optional tax returns and reforms to family benefit payments.
Changes 'fully funded'
The Government says its changes are fully funded over the next four years and will not breach its promise to keep taxes below 23.6 per cent of GDP.
With concerns that low-income earners will not have enough to retire on, the Federal Government will provide a payment of up to $500 annually for those earning under $37,000 on top of the existing co-contribution as a way to offset the tax paid on contributions.
Workers over 50 who have superannuation under $500,000 will be able to top it up by $50,000 a year in concessional contributions.
Those over 70 who are still working will now receive compulsory superannuation contributions until they are 75.
Over 8 million Australians are expected to benefit from the changes which will cost about $2.4 billion over the next four years.
The Government says the changes will give a worker who is aged 30 over $100,000 in extra superannuation by the time they retire.
And it expects that a woman aged 30 who may leave the workforce to have children will still be almost $80,000 better off.
The changes will put $85 billion into the country's national savings over the next 10 years, some of which will be pumped back into the economy to be used on infrastructure.
The Federal Government is keen to increase the national savings and add to the $1 trillion already saved to avoid a reliance on overseas borrowing in the wake of the financial crisis.
While superannuation is set for an overhaul, the Government has rejected several other more contentious recommendations of the review, which was calling for a major shake-up of the tax system.
Mr Swan rejected assertions the Government had a lack of political will.
"I completely and utterly repudiate that assertion," he said.
Some recommendations that the Government will not be making include:
* Replacing state stamp duties on homes with a national land tax
* Removing tax concessions on the not-for-profit sector
* Imposing a flat tax on all alcohol
* Lifting the age that workers receive super payouts to the pension age
* Restoring indexation of the fuel tax
* Removing the Medicare levy
* Reducing the capital gains tax discount
* Lower indexation of the aged pension
* Changes to the dividend imputation
The Government announced last week it would increase taxes on cigarettes by 25 per cent.
With some changes to be implemented soon and others ruled out completely, it remains to be seen what further action the Government may take on other measures in the lead-up to the next election.
The Government has indicated that today's announcements are only a "first step" with more to come that will make the personal income tax system simpler and fairer.
Optional tax returns had been mooted as well as a congestion tax for drivers.
Now some random thoughts
Now I do think things like increasing superannuation will help the country in the long term. We have an aging population and generally don't save, so the government is forced to do it for us (at least those that don't save). We can't just shout population growth and have the young people subsidise the older ones who didn't save and fall back onto the I paid my taxes, so the government needs to look after me wah wah, especially when they have time to accumulate MORE assets than young people and should be better off.
I don't have a problem with a tax on mining companies. Maybe it might keep inflation down as the miners can't give their workers high payrises. Moreover the extra money could help the government do other things, like the increase in superannuation.
However it seems that after all that, these two things are the main centrepiece of the "reform". To be fair its still early days yet and I expect the government to announce more at a later date. I do note that some proposals which would really shake things up such as scrapping negative gearing, taxing vehicles in the form of distance travelled rather than registration etc have been rejected. This itself is not surprising as its going to be politically poisonous, but would have been nice, namely with property prices going sky high, with those who bought houses while it was cheap able to borrow against them to buy several more properties, which in turn puts prices up more.
EDIT - there is also mention that they will make things more enticing for savers. Too bad we didn't have this type of thing while I was saving up for my house (typical) but I think this is a good thing. We don't save enough and its shocking that some of those who earnt the big bucks in the first mining boom (ie Cashed Up Bogans / CUBs) end up relying on government hand outs when the boom went temporarily bust. Its also a good thing as it puts those who save on a more even footing with those who borrow a high percentage of the house price for investment property and then whine when the market turns against them. Come on guys, you had freaking negative gearing and various deductions to help you out.
