I have been watching and listening to the debate between the federal government and the miners about the planned super mining tax and wondering about the impact of the new tax on small business. I’ve also been wondering about the pathetic school yard jibes but that is a blog post for another time.
With some new mining projects already on hold and talk of others not developing as far as planned, newsagencies in mining towns will feel an impact. I know some of these businesses and the towns involved. They have been enjoying excellent business and have invested considerably to serve the growth.
Given the disconnect between the income source for the planned super tax and claimed spending priorities for the revenue, there is no wonder that Australians are confused as the government says they are.
The economic uncertainty created by the way in which the government has handled the matter is impacting in mining towns already.
The behaviour of the government last week in bypassing its own regulations on advertising and breaking an explicit promise to the Australian electroate made during the last election campaign is, in my view, appalling.
Mark, i dont like political comments but this gov has had a negative impact on small business well before this latest bungle of mining supertax. The latest tobacco tax has had a huge affect on customer purchasing habits (within mining communities or not) and will continue to do so, the bungled BER and insulation projects will cost this country dearly and now they are simply trying to find a huge ladder to climb out of the huge hole they find themselves in. People are saying get rid of them and vote someone else in, who would want the task of trying to get out of this mess?, they would have to be in power for the next 60 years. I think KRUDD may as well apply for a job at one of the BIG 4 banks they seem to have the same respect for not only business in Australia but its inhabitants as well.
I didn’t vote for this mob. Who did?
i did not too. who did?
Not me, but I sure as hell didn’t vote for the other mob either.
On one siade we have a party with limited business experience and on the other one with plenty of ivory tower experience. Both major parties don’t cater to the needs of small business for one reason … it doesn’t win votes.
We are in the heart of one of the countiries most prominent mining areas and business couldn’t be better (our May turnover was well up on last year). We haven’t felt any impact from the accouncement of the resources tax and don’t really expect to.
I’d note that there has been minimal impact on the share prices in the resources sector and that the mining unions (hate them or not) support the tax.
@ Jarryd
The mining coalition asked for the tax in the first place (and at the same 40% too from what I understand).
Long term they want the tax, but “right now” resource profits are looking pretty good due to the commodity prices. So if they can drag it out a year or two before i goes in, (or at least until the next slump) they will be quite happy.
Good to hear you are still doing well at any rate.
Jarryd, when your mine closes I’m sure that your union mates will help you out and your superannuation will be magic as well.
Paul,
I have absolutely no connection to any union and never have. My stand on unions is that they provide a necessary service to vulnerable employee segments. Unions, just like businesses, take action that is sometimes constructive and sometime destructive.
The point I made regarding mining unions supporting the tax was that it would be difficult to argue that there is going to be significant impacts on the employees of mining companies when the groups representing those employees support it.
I have no idea what your talking about in terms of superannuation … ?
Id like to see any evidence which supports the notion that such a tax will not impact investment and ultimately small business.
Surely,Australias two mining giants are already evaluating the opportunity cost of investment in a country with a high tax regime compared with a country with a low tax regime.
Outside of the tax itself is the issue of leadership over change. The government says that there is plenty of time for consultation. In the meantime, they have created uncertainty where before there was none. That is hurting businesses and families already – regardless of whether it is justified.
Anthony,
Mining companies will invest where natural resources are available. Australia is relatively unique in its abundance of these.
Mark,
Your right. The government hasn’t handled the process of change well in this instance (which unfortunatly seems to be a recurring trend of late). Naturally, mainstream media has played a significant part in this, but that should have been forseen.
In retrospect I think the government would have found a much better response (and most likely a better outcome for the whole tax system) if they had implemented a resources tax as part of a major overhall package derived from the Henry review.
When you have the likes of mining magnate David Forrest leading the charge to demonstrate against the mining super tax should you ask yourself who has the most to lose from it? Not the Australian economy but the mining executives. Mining will continue in Australia profits and executive bonuses will dictate it.
Lost jobs if we tax the mining corporate fascists. Would that be a lost Head jobs or a lost Hand jobs?
kind regard to all of the AUS class traitors.
The shareholders are the one who profit the most. Super funds, mums and dads and, yes, rich people.
You don’t introduce a new tax the way this has been done. What we have seen on this issue is poor leadership which has led to uncertainty.
I run a small family painting business & sence the the rudd infection we have been battling . I was watching ruddies add on t.v. saying how the super tax will be able to offer me tax cut yippy i thorough till i opened the mail the next day from the ato informing me that my tax was to be double. classic give it & take back