The Henry Tax Report

[flower]

Newspaper reports say that this may radically change the way ASX commodity producers are taxed in that the way the taxes are levied may change to a profit based scheme rather than a revenue based tax.

 

Company profits could fall by by up to 56%.

 

Hardest hit would seem to be Fortescue--Murchison--Gindalbie--Mount Gibson--Western Areas-- Panaromic--Minara

 

Coal Seam gas producers could pay the same tax rates as currently paid by offshore oil producers.

 

One broker now prefers resource companies with mainly offshore (presumably meaning not in Australia) operations.

 

UBS have cut net present values of BHP and RIO by 20%

 

They estimate net profits of the following could fall: Kagara31%----Panaromic33%-----Western Areas25%-----Avoca25%-----Dominion33%-----FMG39%----Gindalbie56%-----M Gibson32%.

 

All in all its a dismal thought--that is if the report is presented in the form the Press now see. Obviously it is this that has depressed the Commodity section over the last few days.

 

By Monday open we will know the worst--if anybody has any other forecast profit figures--more importantly AFTER the report is published please sing out--hope a complete change in taxation emphasis will not have these sort of disastrous effects, it's very difficult to comprehend the logicality of such a move--if it is made.

 

I know that in the US where a similiar tax is now being used companies are shifting their domicility to Canada etc to avoid the tax.

 

Comments please.

[kelt]

Reports superannuation capital gains tax will go from 15% to 30%. Thanks Kevin.

[hungry]

Alan Kohler will be doing a special report on ABC Sunday night, after the facts come to light.

 

Kelt

Can't see that happening. What incentive would we have to putting funds into super.

Surely they're not that stupid

[flower]

Hi both--did you see Don Volte the WPL CEO yesterday on ABC news when, as a throw away line, mentioned moving their tax domicility if necessary?

 

Its interesting that K.Rudd is mirroring what Obama is doing in the States, the result being that many US oil companies have simply moved their head offices and therefore their registered tax adress to a more tax friendly regime--in the US case they simply move over the border into Canada, where they dont have the new taxes the US has.

 

It must be hoped we are jumping the gun here, because it would be just plain stupid to start penalising successfull companies to pay for his failed bail out policies, notice Malcolm Turnbull is reconsidering his decision to quit politics, maybe he senses K.Rudd might go one step too far if he implements any new tax grab on resources--which keeps us afloat and ahead of the world pack.

 

My personal take only.

[kelt]

G'day Hungry,

 

It was just speculation I read in one online news website. I don't know which one but were saying our great Labor Party will decrease tax on bank deposit gains, saving the taxpayer 1 bill but add more tax to super costing us 10bill. Nice offset.

 

Here is a different take:-

 

Funds await super Sunday

 

This could include increasing the super contribution through the introduction of tax scales on super so that every working Australian pays zero tax on the first $5000 of super and then moves up the scale up to 30 per cent.

 

http://www.smh.com.au/business/federal-bud...00429-twjy.html

 

Going on what they just did with cigarettes nothing will surprise me.

 

kelt

[kelt]

I heard Twiggy say something similar.

[Duster]

Although not related to resource companies, a lower tax rate on savings accounts could bolster bank profits by encouraging an increase in deposits.

 

Tax cask wine drinkers - now that can only be good IMHO

[wolverine]

Super surcharge makes sure that 30% is the current top rate unless I have lost track of things?!?!

[dfonze]

when will these new tax rules start ? and does that mean if i take money out of super before retirement i would need to pay 30% tax instead of 15% tax ?

[kelt]

http://www.xtranormal.com/watch/6501207