Wayne Swan’s note on the effects of the RSPT is well worth a read.
Update: John Quiggin on the RSPT.
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I mentioned this in another thread but I found it very educational and I think it should have been released with the policy rather than days later – especially the table comparing the effective tax rates with the different schemes for different rates of return. I thought it was a bit hand-wavy when it came to the government covering 40% of mine losses – does that mean that even if a mine owner is negligent and there is an accident which requires an expensive cleanup or large amounts of compensation thus pushing the mine into big losses that the government will pick up 40% of the losses?
As an aside – a bit odd for Peter Martin to just cut and paste almost the entire note – why not just link to it?
I mentioned this in another thread but I found it very educational and I think it should have been released with the policy rather than days later – especially the table comparing the effective tax rates with the different schemes for different rates of return. I thought it was a bit hand-wavy when it came to the government covering 40% of mine losses – does that mean that even if a mine owner is negligent and there is an accident which requires an expensive cleanup or large amounts of compensation thus pushing the mine into big losses that the government will pick up 40% of the losses?
As an aside – a bit odd for Peter Martin to just cut and paste almost the entire note – why not just link to it?
Traffic to his blog?
I agree it would have been better to have this ready to go at the time of the policy announcement.
Traffic to his blog?
I agree it would have been better to have this ready to go at the time of the policy announcement.
Yes very revealing and bolsters my view that this super profits tax is long needed. I’d love to get a breakdown on each state’s royalties take and application.
Whenever I think about this RSPT I viddy all those BHP/Rio iron ore trains running on the Feds diesel rebate.
Yes very revealing and bolsters my view that this super profits tax is long needed. I’d love to get a breakdown on each state’s royalties take and application.
Whenever I think about this RSPT I viddy all those BHP/Rio iron ore trains running on the Feds diesel rebate.
It may be revealing to you, Pablo, and to others well versed in company tax but it’s almost incomprehensible to me, and I pride myself on being able to read reasonably dense prose. The government needs to spell out its rationale for this tax much more clearly and succinctly for the average voter and to reassure them on all the scare issues raised by the mining companies and the Opposition. I posted elsewhere my little pome when I saw Clive Palmer on Lateline.
As I watched Lateline last night
A big fat man gave me a fright.
His name they said was Palmer,
Claimed he’ll be our PM’s karma.
Say’s he’s got a great big axe
To cut him down with this new tax.
First a public execution
Then a miners’ revolution
Making Tony Abbott king
Of absolutely everything
In Oz, especially the mines
On which he has designs.
He’s corpulent and greedy,
With eyes so cold and beady,
I shuddered. Then it came to me.
Surely Labor men will see
Palmer has been heaven sent.
A great TV advertisement!
I was sure that Labor could do a comeback on the sort of stuff that Palmer was spouting out, but it seems my confidence was misplaced if all that I can see in defence of the RSPT is Peter Martin’s post of Swan’s notes and intelligent on-line comment from people who understand tax law.
Tony Abbott and the Libs have whipped up a storm of fear amongs super fund investors as well as workers fearing for their jobs in resource rich states. It’s going to be hard to counter that.
It may be revealing to you, Pablo, and to others well versed in company tax but it’s almost incomprehensible to me, and I pride myself on being able to read reasonably dense prose. The government needs to spell out its rationale for this tax much more clearly and succinctly for the average voter and to reassure them on all the scare issues raised by the mining companies and the Opposition. I posted elsewhere my little pome when I saw Clive Palmer on Lateline.
As I watched Lateline last night
A big fat man gave me a fright.
His name they said was Palmer,
Claimed he’ll be our PM’s karma.
Say’s he’s got a great big axe
To cut him down with this new tax.
First a public execution
Then a miners’ revolution
Making Tony Abbott king
Of absolutely everything
In Oz, especially the mines
On which he has designs.
He’s corpulent and greedy,
With eyes so cold and beady,
I shuddered. Then it came to me.
Surely Labor men will see
Palmer has been heaven sent.
A great TV advertisement!
I was sure that Labor could do a comeback on the sort of stuff that Palmer was spouting out, but it seems my confidence was misplaced if all that I can see in defence of the RSPT is Peter Martin’s post of Swan’s notes and intelligent on-line comment from people who understand tax law.
Tony Abbott and the Libs have whipped up a storm of fear amongs super fund investors as well as workers fearing for their jobs in resource rich states. It’s going to be hard to counter that.
Yes, a good summary. Too bad its salient points won’t get a run on the autocues tonight or the papers tomorrow.
Yes, a good summary. Too bad its salient points won’t get a run on the autocues tonight or the papers tomorrow.
Run scared little man, the bogey monster is comin to get ya. Tax ain’t no rat, it pays for your rants Patrica of WA and yes it pays for mine too. The social contract is far too nuanced for those who break it down to do’s and don’ts . And who cares big Rob if it don’t get no run, what counts is the opportunity to have a spit.
Run Rabbit run
Run scared little man, the bogey monster is comin to get ya. Tax ain’t no rat, it pays for your rants Patrica of WA and yes it pays for mine too. The social contract is far too nuanced for those who break it down to do’s and don’ts . And who cares big Rob if it don’t get no run, what counts is the opportunity to have a spit.
Run Rabbit run
Thanks for the link – now I understand it. So, effectively, this new tax regime encourages exploration by lowering tax for marginal, risky or low return ventures, and only gets them to pay more if they make substantially larger returns?
Sounds reasonable to me. Plus it gurantees a fair return to the australian taxpayer who effectiveely provided the raw materials.
Again, though, good policy aint good politics till its explained well, and clearly. Keating was actually the master of this.
Thanks for the link – now I understand it. So, effectively, this new tax regime encourages exploration by lowering tax for marginal, risky or low return ventures, and only gets them to pay more if they make substantially larger returns?
Sounds reasonable to me. Plus it gurantees a fair return to the australian taxpayer who effectiveely provided the raw materials.
Again, though, good policy aint good politics till its explained well, and clearly. Keating was actually the master of this.
Exactly Lefty E and there were quiet suggestions of shoving a few bucks into the shares of smaller more marginal mining companies that were lost in the Oh Noes The Plunge!!! Excellent really, encourage risk and innovation at the expense of established super-profiteers. Speak to the invisible hand, Mr Smith.
It is, in the end, a way of selling our (OUR) minerals at the best possible price and all we need, as any good salesperson knows, is to get just enough out of them to stop them walking out the door. The liberals are behaving like some kid at a lemonade stand.
Gee whiz 5cents! Thanks mister!
Exactly Lefty E and there were quiet suggestions of shoving a few bucks into the shares of smaller more marginal mining companies that were lost in the Oh Noes The Plunge!!! Excellent really, encourage risk and innovation at the expense of established super-profiteers. Speak to the invisible hand, Mr Smith.
It is, in the end, a way of selling our (OUR) minerals at the best possible price and all we need, as any good salesperson knows, is to get just enough out of them to stop them walking out the door. The liberals are behaving like some kid at a lemonade stand.
Gee whiz 5cents! Thanks mister!
So the government should be out there selling it and crushing the opposition!
So the government should be out there selling it and crushing the opposition!
Damned straight, Jane!
If they were a certain previous government they’d be running a government funded ad campaign [they could have red arrows with dollars on them pointing out of Australia to the north] to inform citizens and hustling up some cash for a family bonus to keep things sweet.
Damned straight, Jane!
If they were a certain previous government they’d be running a government funded ad campaign [they could have red arrows with dollars on them pointing out of Australia to the north] to inform citizens and hustling up some cash for a family bonus to keep things sweet.
You make a good point anthony. In all the easy mud throwing at the failure of the government to communicate properly it has not been acknowledged that they do not spend anywhere near the amount on publicly funded advertising than did the previous government.
You make a good point anthony. In all the easy mud throwing at the failure of the government to communicate properly it has not been acknowledged that they do not spend anywhere near the amount on publicly funded advertising than did the previous government.
Update: John Quiggin on the RSPT.
Update: John Quiggin on the RSPT.
Lefty E @7 and Anthony @8, agree.
This budget may come out better than we all think!
Lefty E @7 and Anthony @8, agree.
This budget may come out better than we all think!
In today’s AFR John Kehoe (p.
has a go at peeling a couple of layers off, but it’s a struggle. The most critical aspect of the RSPT structure – the sliding scale – is buried in the final paragraphs.
In today’s AFR John Kehoe (p.
has a go at peeling a couple of layers off, but it’s a struggle. The most critical aspect of the RSPT structure – the sliding scale – is buried in the final paragraphs.
On page 8!
On page 8!