What’s next on Labor’s ‘super tax’ hit list?
6th May, 2010
Farmers and other regional small businesses could be next on Labor’s tax hit list on profits as the drought eases and their incomes recover.With a self-created debt of almost $140,000,000,000, the Rudd Government has made clear that anyone prospering against the odds under Labor mismanagement is in its sights, especially if they use natural resources.
The Leader of The Nationals, Warren Truss, said the Rudd Government had left itself enough room to expand its tax hit list in the recommendations from the Henry Tax Review that it did not rule out.
“For example, live options include a new cash flow tax on business, removing the zonal tax rebate or winding it back, and three new taxes on the trucking industry,” Mr Truss said.
“Beyond mining, there are many other industries in regional Australia that depend upon the careful harvesting or use of natural resources to create business, jobs and investment.
“Using a similar rationale to the 40 percent ‘super tax’ on mining profits, what’s to stop Rudd Labor from doing the same to profits made by farmers who hopefully will see incomes rise strongly as the drought recedes, admittedly off a very low base and not in all places in Australia?
“What about energy companies who provide the power to keep Australia moving? What about timber companies, irrigators or fishermen?
“The Rudd Government has form of course. The tax that dare not speak its name until after the election, the Carbon Pollution Reduction Scheme, is lurking dangerously and would be devastating for the regions.”
The introduction of the mining super tax does not have an isolated effect on that sector:
• The mining tax created a rout on the share market, costing individual investors and stripping $14.5 billion from retirement savings;
• Canada has quickly acted to claim that it now offers a competitive advantage for mining over Australia. As one Canadian MP said today about Labor’s claims to be redistributing mining profits to all – “I’m fine if the Australian Government wants to make that argument, I just want the jobs coming to Saskatchewan”;
• Energy companies warn that household electricity and gas prices will have to rise.
“This is yet another Rudd Labor disaster in the making and The Nationals will not support Labor’s tax grab,” Mr Truss said.
