BF2S Forums Australian politics thread.

Last edited by Dilbert_X (2010-05-01 05:02:32)

This system resulted in a mere 5% decrease in CO2 and was locked in till 2020 ( from memory).

Spark wrote:

This system resulted in a mere 5% decrease in CO2 and was locked in till 2020 ( from memory).

I would remind you this represents, per capita, a cut in emissions to two thirds of what they would otherwise be.

Last edited by Burwhale (2010-05-01 16:16:02)

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

Burwhale wrote:

I think theres some points to like about the Henry rev. As usual with the Rudd govt , he could have gone further, but doesnt want to hurt anyones feelings so it falls a bit short. possibly good on the whole. I will wait till I have heard a bit more about it before I say any more. 40% tax on miners on profits over expected. Not sure how they determine this... More to come, I'm sure.

Spark wrote:

just out of interest, who else is reading this thread?