OZBUSDRIVER. I think you are over reacting. The current Federal Government is increasingly proving to be immature, inexperienced, ineffective, indecisive - and incompetent. There is public debate, a potentially hostile Senate and probably an Election before any significant tax changes occur.
What concerns me is that the Henry Report appears to focus on revenue raising, rather than expenditure cuts. Whilst I haven't read it, from media reports it appears to be a further tax grab to fund the excesses of an incompetent, pork barrelling Government.
The increase in mandatory Superannuation levy is a good start. The next move is progressive introduction of a mandatory employee Superannuation levy, towards a future minimum target of 20% of gross employee income.
And yes, I am old enough to remember the gross incompetence of the Whitlam era but have no knowledge of what may have occurred in western Queensland.
I am also disappointed there is no wealth generation tax relief for senior citizens. How hard is it to give Capital Gains Tax relief to over 60s where assets are sold and profits invested in Superannuation? How hard is it to increase the maximum Superannuation contribution at concessional input tax rates for over 60s? Why does the Federal Government not limit the ever increasing level of State taxes, many counter productive to the needs of Australia? (e.g. Excessive State "Stamp Duty" on investment property purchases?)
I agree with the Chaser. Don't under estimate the power of the resources industry and indeed, the power of the Australian public. Sky News this morning is reporting News Poll results 49% Government; 51% Coalition and the PMs popularity has fallen eight points. This Government is increasingly looking to have a very bleak future.
Like the new tobacco tax increase, this is nothing more than a further tax grab to fund the excesses of fiscally incompetent and irresponsible Government.
The Tax Review has a long and probably very bumpy road before a compromise may become law.
Also, expect an Interest Rate increase today, probably around 0.25% and at least a 1% increase over the next twelve months.
Last edited by Torres; 3rd May 2010 at 20:12.