Henry review and aviation
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Henry review and aviation
Short haul: Henry tax review
SHORT HAUL
From: The Australian
April 30, 2010 12:00AM
THE aviation industry is not harbouring high hopes of a major win from the Henry tax review when it is released on Sunday. Two airlines and two industry organisations filed submissions to the review, but none contacted by The Australian this week was optimistic aviation-specific concerns would be addressed.
Submissions included accelerated depreciation for aircraft, lower corporate taxes to give international operators a more level playing field and greater clarity on the use of money collected through passenger movement charges.
What a shock,the aviation industry gets overlooked once again
SHORT HAUL
From: The Australian
April 30, 2010 12:00AM
THE aviation industry is not harbouring high hopes of a major win from the Henry tax review when it is released on Sunday. Two airlines and two industry organisations filed submissions to the review, but none contacted by The Australian this week was optimistic aviation-specific concerns would be addressed.
Submissions included accelerated depreciation for aircraft, lower corporate taxes to give international operators a more level playing field and greater clarity on the use of money collected through passenger movement charges.
What a shock,the aviation industry gets overlooked once again
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We are talking about draconian Australia after all aren't we?
What made you think that aviation here would get a break?
Who is going to feed the plasma brigade?
Who is going to pay for the tag'' we escaped a recession because we were so smart''by dishing out billions to the riffraff?
Once upon a time for every 30 employed people, 1 person was on welfare, nowdays its 5:1 and out of that 5, three are public servants.
Does that tell you something?
Yea right.
Improve Sydney Airport just like all major international airports perhaps?
(eg the Tbus between terminals stops service at 21:20)I forgot, the Airport, its privatised, and for the better apparently(of someone's pocket and not for the convenience of the traveling public!What a sham!
What a disgrace!
What made you think that aviation here would get a break?
Who is going to feed the plasma brigade?
Who is going to pay for the tag'' we escaped a recession because we were so smart''by dishing out billions to the riffraff?
Once upon a time for every 30 employed people, 1 person was on welfare, nowdays its 5:1 and out of that 5, three are public servants.
Does that tell you something?
the use of money collected through passenger movement charges.
Improve Sydney Airport just like all major international airports perhaps?
(eg the Tbus between terminals stops service at 21:20)I forgot, the Airport, its privatised, and for the better apparently(of someone's pocket and not for the convenience of the traveling public!What a sham!
What a disgrace!
Last edited by abc1; 2nd May 2010 at 14:13.
Ahhr C'mon. We can now all work untill we're 75!
That'll compensate for all the young'uns that are increasingly turning their noses up at what was once a revered and much sought after profession.
That'll compensate for all the young'uns that are increasingly turning their noses up at what was once a revered and much sought after profession.
What did you expect - an aviation industry sobsidy? 
I have not read the recommendations but according to the media, companies will be able to accelerate depreciation and company tax will reduce - surely that must benefit airline companies?
Super is to rise 3%, that must benefit airline employees?
I have not read the recommendations but according to the media, companies will be able to accelerate depreciation and company tax will reduce - surely that must benefit airline companies?
Super is to rise 3%, that must benefit airline employees?
Torres, what happens if you cannot pass on your costs to your customers.
For the global companies??? Rudd says "Bluff" I remember 1974 and the oil exploration industry. Whitlam withdrew the dollar for dollar investment in exploration....Buses went out over night, crews were returned to base and sacked. Skeleton crews brought the gear back to Roma. Torres, surely you are old enough to remember the acres of gear stored in the paddocks along Mitchell Rd outside Roma? It took years for the industry to recover. It put back oil production by at least a decade.
Rudd thinks of his workers (BS...its a cash grab!) but thinks nothing of screwing with investors. The Mum and Dad investors and their super funds that will take a hit if they are exposed to Australian commodities markets.
Winding back the minerals boom...FIFO is the first to be affected. The market is factoring and the bill hasn't even made it to the Senate.
For the global companies??? Rudd says "Bluff" I remember 1974 and the oil exploration industry. Whitlam withdrew the dollar for dollar investment in exploration....Buses went out over night, crews were returned to base and sacked. Skeleton crews brought the gear back to Roma. Torres, surely you are old enough to remember the acres of gear stored in the paddocks along Mitchell Rd outside Roma? It took years for the industry to recover. It put back oil production by at least a decade.
Rudd thinks of his workers (BS...its a cash grab!) but thinks nothing of screwing with investors. The Mum and Dad investors and their super funds that will take a hit if they are exposed to Australian commodities markets.
Winding back the minerals boom...FIFO is the first to be affected. The market is factoring and the bill hasn't even made it to the Senate.
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OFFS
The industry will lobby hard in the negotiations for 'transition'.
In the end, the raw materials are worth a kings ransom. The gummint will fold a bit, so will industry, the election will be out of the way by then, a nice little compromise will be struck, Evelybodie haaaaaapie
FIFO have NOTHING to worry about ... wake up dudes and smell the posturing
The industry will lobby hard in the negotiations for 'transition'.
In the end, the raw materials are worth a kings ransom. The gummint will fold a bit, so will industry, the election will be out of the way by then, a nice little compromise will be struck, Evelybodie haaaaaapie
FIFO have NOTHING to worry about ... wake up dudes and smell the posturing
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.
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.
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Increased depreciation and slight decrease in company tax sounds good but it's all end of year stuff and back end accounting for a business.
Increased costs, rent and 33% increase in Super expenses for employees is a direct grab of cash out of a business.
The original introduction of Super was a trade-off against wage increases. This new increase in Super is in addition to any future wage increases.
Cash flow has to increase to meet these obligations - All businesses (not just Aviation) will need to raise prices again to cover.
A slight positive for Aviation is a possible advantage for persons on the fringes of Aviation to invest in new aircraft. - i.e. Doctors etc. who may need a good 30% depreciation rate compared to the current 10% rate for aircraft. This may trickle some newer aircraft into flight schools and aero clubs for on-line rental.
Increased costs, rent and 33% increase in Super expenses for employees is a direct grab of cash out of a business.
The original introduction of Super was a trade-off against wage increases. This new increase in Super is in addition to any future wage increases.
Cash flow has to increase to meet these obligations - All businesses (not just Aviation) will need to raise prices again to cover.
A slight positive for Aviation is a possible advantage for persons on the fringes of Aviation to invest in new aircraft. - i.e. Doctors etc. who may need a good 30% depreciation rate compared to the current 10% rate for aircraft. This may trickle some newer aircraft into flight schools and aero clubs for on-line rental.
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This country has taxed and over regulated itself out of virtually every industry we toiled in. Are we so determined to stifle investment in the few industries that still provide Australia with a first world standard of living?
We compete on a world level, although the word "compete" is fast becoming an oxymoron in this parochial, short sighted, country town we call Australia.
Maybe a reduction on taxation in aviation would facilitate overseas travel for some of our more "inward" looking to see what we are actually competing against and how valuable our standard of living is.
We compete on a world level, although the word "compete" is fast becoming an oxymoron in this parochial, short sighted, country town we call Australia.
Maybe a reduction on taxation in aviation would facilitate overseas travel for some of our more "inward" looking to see what we are actually competing against and how valuable our standard of living is.
Last edited by maralinga; 4th May 2010 at 03:26. Reason: grammar
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I have posted this before, but I think it's appropriate to be reminded of one of the most profound quotes in political history and very apt for the current goverment's mismanagement of our taxes.
' The problem with socialism is that eventually you run out of other people's money '
Mrs M Thatcher
' The problem with socialism is that eventually you run out of other people's money '
Mrs M Thatcher
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Foreign Investment
I'm no economist; but I was under the impression that encouraging foreign investment was a good thing? I really don't understand the intricacies of international finance. :-( Those that do seem to mostly agree that foreign investment is good?
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....I still think the best thing we could do is remove a layer of government......
....my choice would be to ditch NSW government - simply leaving local council and a federal government.
Feds may not be the best thing around, but I think the NSW government holds the lead in teaching us how to be dysfunctional!!! (by only a small margin...)
....my choice would be to ditch NSW government - simply leaving local council and a federal government.
Feds may not be the best thing around, but I think the NSW government holds the lead in teaching us how to be dysfunctional!!! (by only a small margin...)
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If you guys believe that Australia is a tax rich environment you should move to Germany! We pay tax on tax with a 19.5% GST, 9% religion tax (that's right you declare you are an xxxx religion and they slug you), 35% income tax, 5.5% reunification tax, 3% social security, 5% nursing home tax.
Believe me I'd trade the Australian tax system for this rort any day.
Believe me I'd trade the Australian tax system for this rort any day.
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So let me get this straight, what we have is a super tax for the miners.
But what if say an overseas company comes down here and buys up say 50% of a company. And this overseas company happens to be a Steel producer. Surely they just sell the fines to themselves on the cheap, because thats why they are here - to control the price they get the fines for in the first place. Therefore smaller profit, if any for the mining company = bugger all tax...
Maybe I am wrong, but if you don't make a profit, you don't pay the tax - profit tax?
But what if say an overseas company comes down here and buys up say 50% of a company. And this overseas company happens to be a Steel producer. Surely they just sell the fines to themselves on the cheap, because thats why they are here - to control the price they get the fines for in the first place. Therefore smaller profit, if any for the mining company = bugger all tax...
Maybe I am wrong, but if you don't make a profit, you don't pay the tax - profit tax?
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I can tell you first hand that is what most foreign owned companies DO or try to do in some way and they eventually show a profit, albeit a small one.
I worked for one, and as part of the reason I do not any more, and now I have a small and successful company it really gets up my nose they pay less than I do!
Having said that I doubt that the big miners do it that way as it would be an easy target for the ATO, but you can be sure there are some little bits here and there.
I worked for one, and as part of the reason I do not any more, and now I have a small and successful company it really gets up my nose they pay less than I do!
Having said that I doubt that the big miners do it that way as it would be an easy target for the ATO, but you can be sure there are some little bits here and there.
"Transfer Pricing" is the term you are trying to come to grips with. That is when a commodity is sold between related international companies, at a price such that the profit on sale accrues in a low tax country, in in a third "brokering" country which is a tax haven.
Whilst recent events overseas tend to confirm that some graft, corruption and kickbacks may occur, the sale of Australian resources is suject to international open market commodity prices and sale contracts are subject to very close scrutiny by Australian authorities.
Australia's wealth is a result of it's commodities and the wealth of it's resource companies. One wonders at the intelligence of a Government intent on strangling the golden goose.
Perhaps Government at all levels should look at it's own expenditure and learn to live within it's means, rather than continually devision new tax grab schemes?
It may surprise you to know that an Australian worker on $50,000 per annum with his own home is now paying between 55% and 70% of gross wages in taxes, excise, import duties, stamp duty, fees, charges and levies to the three levels of Australian Government?
Whilst recent events overseas tend to confirm that some graft, corruption and kickbacks may occur, the sale of Australian resources is suject to international open market commodity prices and sale contracts are subject to very close scrutiny by Australian authorities.
Australia's wealth is a result of it's commodities and the wealth of it's resource companies. One wonders at the intelligence of a Government intent on strangling the golden goose.
Perhaps Government at all levels should look at it's own expenditure and learn to live within it's means, rather than continually devision new tax grab schemes?
It may surprise you to know that an Australian worker on $50,000 per annum with his own home is now paying between 55% and 70% of gross wages in taxes, excise, import duties, stamp duty, fees, charges and levies to the three levels of Australian Government?
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Transfer pricing is the topic 
Goes on a lot more than many believe.
As for the rest of your post....sums it up pretty well indeed!
but holy cow!
That is a statistic you just do not want to know.....suicide rates will climb if too many folk hear about that! 
Have you any further statistics for income brackets in say $50k chunks?
Not that I really want to know.
Goes on a lot more than many believe.As for the rest of your post....sums it up pretty well indeed!
but holy cow!
It may surprise you to know that an Australian worker on $50,000 per annum with his own home is now paying between 55% and 70% of gross wages in taxes, excise, import duties, stamp duty, fees, charges and levies to the three levels of Australian Government?
Have you any further statistics for income brackets in say $50k chunks?
Not that I really want to know.
It is a few years since I've seen the average tax percentage published and I suspect it is a figure no Government wants you to know.
A spread sheet estimate is easy enough to compile if you have your PAYG tax take; FBT asnd CGT; GST on virtually everything; Superannuation input tax (15% - now talk of increasing); the excise/tax rate on fuel, smokes and booze; Airport taxes; Bank debit taxes; State stamp duty on property purchases, vehicle registration, insurance policies etc; import duties on a range of commodities including clothing; State taxes including Payroll Tax; Local Government charges etc - the list is never ending.
Other countries may have higher rates of direct tax on earnings or higher GST/VAT, but do they have the number of hidden taxes Australia has?
And more importantly, does Australia get fair value for the taxes it pays? Looking at the home insulation program, school halls program, the National Fibre Optic network and particularly the state of our highways, health and medical services and education system, and the bureaucratic bullsh!t from far too many Government agencies that we must live with every day of our lives, I personally don't think so!
A spread sheet estimate is easy enough to compile if you have your PAYG tax take; FBT asnd CGT; GST on virtually everything; Superannuation input tax (15% - now talk of increasing); the excise/tax rate on fuel, smokes and booze; Airport taxes; Bank debit taxes; State stamp duty on property purchases, vehicle registration, insurance policies etc; import duties on a range of commodities including clothing; State taxes including Payroll Tax; Local Government charges etc - the list is never ending.
Other countries may have higher rates of direct tax on earnings or higher GST/VAT, but do they have the number of hidden taxes Australia has?
And more importantly, does Australia get fair value for the taxes it pays? Looking at the home insulation program, school halls program, the National Fibre Optic network and particularly the state of our highways, health and medical services and education system, and the bureaucratic bullsh!t from far too many Government agencies that we must live with every day of our lives, I personally don't think so!
