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Sep 3, 2014

End of the mining tax guarantees more tax for the poor

The government's delay in lifting compulsory super contributions means low and middle income earners will pay more tax.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

For months the government has been under fire for trying to address the “fiscal emergency” solely by spending cuts aimed at low- and middle-income earners, while tens of billions in tax breaks flowing disproportionately to high-income earners via the superannuation system have been untouched. Now, finally, the government has moved to reduce the cost of super tax breaks flowing to … oops, well, low- and middle-income earners.

14 comments

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14 thoughts on “End of the mining tax guarantees more tax for the poor

  1. Mick Handcock

    This is absolutely disgusting future wrecking behaviour dressed up as fiscal conservative discipline. A disgracerul display favoring the mining sector over the larger majority these dolts are supposed to be governing for. The jury is no longer out, the results are in, any lower to middle income bracket voter who voted LNP or PUP or anyone who supported this debacle is as thick as Cormann, Hockey and Abbott who are demonstrably thicker than your average politician.

  2. zut alors

    Another nail in the coffin of Hockey’s professional CV.

  3. Mali Edon

    Delaying the increase in compulsory superannuation will mean more money in the hand of the employer. Whether the employer will be obliged by labour shortages to give more to the employee is highly debatable.

    When does this government govern for all Australians?

  4. GF50

    Nailed it Bernard! How dare you be so rational, no team Australia membership for you! You are supposed to suspend logic. Not barracking hard enough, screaming slogans for the “team”. That’s where a good education in critical analysis leaves you! Off the team.

  5. Honest Johnny

    Its not only workers who will pay more tax, small business will as well, with the repeal of the associated measures. These measures were set up during the GFC to encourage ongoing investment and employment in small business (kind of like ‘Direct Action’). Conditions have hardly improved to the extent that they should be removed in order to help mining companies. Anyone or any entity who is not wealthy or a mining company lost out yesterday.

  6. Yclept

    Spot on Mali (#3, it will just leave more in the pockets of employers as the 457s will keep up an over supply of workers which keeps wages down. Racing to the bottom as fast as we can!

  7. leon knight

    But who read the recent Saturday Paper report into the great electricity grid rip-off instigated by that treasurer many Australians consider to be our best in recent memory (albeit well behind “don’t know”:
    http://www.themonthly.com.au/issue/2014/july/1404136800/jess-hill/power-corrupts
    Or the Guardian article on where this relentless growth of big business is likely to take us:
    http://www.theguardian.com/commentisfree/2014/sep/02/limits-to-growth-was-right-new-research-shows-were-nearing-collapse
    Some sobering reading that screams out “get rid of these right wing morons and resume proper progressive government”

  8. graybul

    The ultimate Abbott Government objective . . Serfdom!!

  9. Dogs breakfast

    Forgetting all the other reasons why this is bad policy, the loss of the superannuation offset for lower income workers is a terrible outcome, and exactly the wrong direction that the government needs to go.

    While the high income earners get huge tax breaks on their super contributions, for those under $18,200, their tax free income is taxed at 15% on the way in to super. Tax free income replaced by taxable income. What a bargain!

    So the policy to nullify this ludicrous situation is abandoned, but the gaping problem of tax minimisation through superannuation is left untouched, (and as far as I can tell, is never spoken of, like the bastard child that it is)

    Superannuation can only be fairly taxed when everyone gets the same concession, regardless of income, it can be done.

    Now we are back to the difference being a 30% tax discount for the very top earners, and a 15% surcharge for the very lowest wage earners.

    Class warfare? Us??

  10. MJPC

    How long till we start hearing the bleating from the big end of mining that, despite their new found wealth, they need industrial reform as Australian miners are too well paid.
    Uncle Joe is a dolt!

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