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Loved the video Adrian. Groovy tunes and the Town Hall did look wonderful with the slide show. Well done.

As to the release of the new plates, which come at a price above the current market value, who are the people buying them ? What is going on when a business that doesn't show a profit suddenly sets up a shop next door at a higher rental ?
Our business has been in the doldrums for the last 2.5 years and yet buyers are paying premium prices for plates. Do they know something we don't ?

But still, looking around at the commercial premises for lease everywhere I look, me thinks the economy is dragging its feet and we are in the middle of it. Two tier, mining doing extremely well and pushing up the numbers whilst small businesses are going broke.

Time to tax the miners properly since that seems to be the only money generated in this miracle economy.


I'm curious about this "tax the miners more" angle.

Without getting too far into my own thoughts, doesn't killing the goose that laid the golden egg enter into peoples' thoughts when that approach is considered?

All things held equal, if local mining taxes increase, and companies have a chance to do more work in other jurisdictions, wouldn't that just end up shooting you in the foot?

Krupo

There has been a lot of misinformation pedaled in the mining tax debate. The big fault is with the government, instead of explaining what is happening to the general public they pitched glossy advertisement against glossy advertisements.

At first, the miners wanted a reform in the way they were taxed.
The old royalties system, putting different tariffs on various minerals per ton was seen as confusing and labor some. Also to pay this to the states, who applied different methods in tax, was a logistical nightmare.

Enter the Henry Tax review with its "Super tax" demand. Whoever cooked that slogan up must have been a coalition supporter.
It certainly was interesting to see the mining industry response, greasing right wing media with the slogan that Australia will go broke as they are going to pull out.
Nothing could be further from the truth, even whilst they said that they were acquiring land in Queensland, at premium prices.
This mining thing is here to stay, no matter what.

Now, to tax the mining crowd has its merit and here is why. Nobody wants to play down that mining comes at a huge capital outlay and therefore wants a good return. The risk here is that the boom will end and you don't get your outlay back. What are the chances of that, considering that you have 1.3 billion Chinese and 1 billion Indians on your doorstep going through a western 1950 expansion period.
The other thing they won't tell us, to put it simplistic, they calculated their expenditure and profit at, lets say, $1000,-- per ton on a particular commodity. Since commodity's are traded, they now receive $4000,-- per ton.

Not a bad windfall if you ask me.

So, my question is, considering the huge amount these companies do earn, why not get a good slice for ourselves whilst the rest of the economy is in the doldrums?

The only reason the mining people wanted to shoot this down is because it sets a precedent that other countries can base a new tax rate on. The western world is in a big black hole and needs this money.

Sadly the miners, due to a spineless government, have won. But please, let us at least pick up the pieces and get a little bit more out of the companies that take what is in our, Australian, soil.

Sorry for this lengthy explanation.

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