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 Kevin Rudd's mining tax graphs misleading: Costello

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Join date : 2010-01-23
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PostSubject: Kevin Rudd's mining tax graphs misleading: Costello   Fri 7 May 2010 - 6:55

Scott Murdoch From: The Australian
* May 07, 2010 11:48AM

FORMER Treasurer Peter Costello has accused Kevin Rudd of publishing misleading graphs on mining taxes to support a super resources tax.

After addressing a Deloitte business function in Sydney today, Mr Costello accused the government of misrepresenting the taxes paid by the mining industries, as part of its response to the Henry tax review delivered last Sunday.

Mr Costello said charts showing that mining royalties paid had risen by only $9 billion while the industry’s profit had grown by $80bn in the past 18 years did not include the effects of the 30 per cent company tax.

“The graphs were bodgied up.” Mr Costello said.

“The graphs showing that tax from companies falling as a proportion of revenue - the way it was bodgied up was that they left out company tax.

“As profits go up, so too does company tax, the company tax take does not fall as profits rise.

“The tax paid by mining companies has not been falling but that has not prevented the rates being raised to 57 per cent.”

The former treasurer said the resources super profits tax would slow mining investment in Australia, which could jeopardise Australia’s economic prospects.

The government's proposed 40 per cent super tax has prompted intense backlash from the mining industry, with billions of potential projects put on hold.

One of Australia’s richest men, Fortescue Metals chief Andrew Forrest has also accused the Prime Minister of misleading the Australian people over the nature of the tax, and labelled the plan - under which the government would share in 40 per cent of profits and losses of projects - as “nationalisation of the mining industry”.

Mr Rudd, who said on Sunday he expected a “well funded fear campaign”, has branded the reaction from the industry as “crying wolf”.

Mr Costello said a Coalition government would never have supported raising tax on miners, and the stance by opposition leader Tony Abbott to object to the policy was correct position.

“If this had ever been bowled up to me, it would not have made it through the door,” he said.

“Tony Abbott is absolutely right. One point to make is that this idea that has been put out there, applies just to super profits is wrong – it’s all profits.

“This is an increase in tax on all profits. The government will get more revenue out of this.”

The Minerals Council of Australia also increased its campaign against the tax and the suggestion the sector didn’t pay enough in taxes, with full page advertisements in newspapers across the country today.

The council said the industry had paid $80bn in taxes and royalties in the past decade and also highlighted that the government had failed to include company taxes paid by the sector in its argument for the new tax.

Mr Costello also criticised Mr Rudd’s response to the Ken Henry review of the national tax system, branding it a “squibbed opportunity” to implement tax reform in Australia.

Mr Costello said the government had missed the opportunity to implement tax reform, by ignoring the majority of the 138 recommendations set out in the Henry Report.

The government will put in place just 10 recommendations and has already ruled out 23 options. It has indicated there could be further action in the future, particularly on the taxation arrangements of customer savings account.

“Everyone was expecting the Henry report would be root and branch improvement of the Australian tax system,'' Mr Costello said.

“The government’s response has been a mild cultivation that does not have much flowering potential.

“To put it another way, the review that was going to be a big bang has turned into a whimper.”

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Posts : 4209
Join date : 2010-01-23
Location : Ausatire

PostSubject: Re: Kevin Rudd's mining tax graphs misleading: Costello   Fri 7 May 2010 - 6:56

We Need Costello back on deck!

Smile ... Wish he'd take the lead.
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