Dude you have had a pretty good run at it, , the young generation just went 700 bill in debt to save you arse and all it basically did was double your asset prices and wealth
But anyway consider just what costello and howard gave you...meanwhile your generation sold nearly all our public assets thats why your super went through the roof etc from our airlines to our gold to our bank to our insurers and electricity companies even the likes of csl you 100 bagged on plus dividends
All the young fold haver same inflation costs as you except they need to pay for fuel to get to work, pay rents cause housing is unaffordable etc
Quit your whining old fella, country is going to shit and your worried about ya self
You got given more than any generation, if you squandered it too bad
On Tuesday, Costello wrote
an op-ed in which he bells the cat on who he thinks should pay less tax. His idea of a fairer tax system means “lowering the reach or rate of top marginal income tax rates”.
For the record, here are five of Costello’s most “profligate” and inequitable decisions, which created the structural deficit inherited by his successors:
1. Permanent income tax cuts during the boom. Worth $37.6bn or $26.4bn if you exclude bracket creep in 2011-12During the first phase of the mining boom the federal government’s coffers were being filled with a temporary windfall gain. Costello made the decision to use this temporary windfall gain to cut income tax, mainly to high income earners. From 2005 to 2012 these
tax cuts cost the budget bottom line $170bn. In 2012 they were costing the budget $37.6bn per year. Even accounting for bracket creep, the tax cuts would cost the budget $26.4bn in 2011-12. They would be worth more today. 42% of these cuts flowed to the top 10% of income earners while 80% of income earners got only 38%.
2. Capital gains tax discount. Worth $5.8bn in 2014-15In 1999 Costello introduced the capital gains tax discount. Capital gains tax applies when someone sells an asset for more than they bought it for. This includes things like shares or investment housing. The capital gains tax discount means that for assets owned for more than 12 months only half the capital gain will be taxed. According to the Treasury this is
worth $5.8bn per year.
3. Got rid of fuel excise indexation. Worth $5.5bn in 2013-14In 2001 Costello removed the fuel excise indexation. Fuel excise indexation meant that the tax rate on petroleum fuel kept up with inflation. Its removal from the budget is
estimated to be costing the budget $5.5bn in 2013-14.
4. Superannuation tax cuts. Worth $2.5bn in 2009-10In 2007 Costello reduced taxation on income earned from superannuation to zero for Australians over the age of 60. At the same time he removed the superannuation surcharge.
The superannuation surcharge acknowledged that the benefit of superannuation tax concessions flowed mainly to high income earners. It meant that those on high incomes paid a higher concessional tax rate on their super contributions and earnings. Costello abolished it in 2005 which meant that high income earners paid a flat 15% tax rate on all superannuation contributions and earnings.
At the time these super changes were estimated to cost the
budget $2.6bn per year by 2009-10. With the rapid growth in superannuation tax concessions (they are currently growing at about 12%) they would be worth much more today.
5. The decision to convert “franking credits” into cash refunds for shareholdersWhen companies pay dividends to Australian shareholders out of after-tax profit, shareholders also receive franking credits which are a credit against their own tax obligation and based on the tax paid by the company. This system, known as “dividend imputation” is unusual and only four other countries in the world use it.
However, in 2000, Costello made the system even more generous to shareholders by allowing them to get a cash refund if they receive more in franking credits than they actually owe in tax. Because income from superannuation is tax free for people over 60, high income retirees can use franking credits to get a cash gift of over 40 cents for every dollar they receive in dividends.
The ATO
estimates that Costello’s decision to allow “excess” franking credits to be refunded as cash cost $4.6bn in 2012-13.
These five changes are worth $56bn per annum. This is likely to be a very conservative estimate since some of these costs were for earlier years. The total is likely to be much more.
