The biggest problem I have with the MRRT/SPT is that it is too narrow and misses the point of taking "super profits". If you are a socialist government and really interested in capturing super profits then you have to look at the country as a whole.
BHP NPAT $12bn CBA NPAT $11.5bn RIO NPAT $4.8bn NAB NPAT expected $4.5bn WBC NPAT expected $4bn ANZ NPAT expected $3.5bn NWS NPAT - big but domiciled in US, not sure how much tax Rupert doesnt pay WES NPAT $1.5bn SGT NPAT - big but Singaporean company, cant imagine it pays much here WOW NPAT $2bn
Incredible, I just found eight more companies in the top ten market caps of Australia that could be hit with a windfall super profits tax. Why does our dear government miss the opportunity to hit the banks and retails with a chance to "share the wealth" and give Australia back its "fair share" from these greedy corporates who make a living off the back of the sweat of the "working man"
The banks and retailers cause far more pain to the working class of Australia than any mining company ever has and they make a lot of money too, as evident from the numbers above (which are NPATs, so real earnings after all the tax avoidance and mucking about has happened). You could add in a theoretical 20-30% on top from the tax they supposedly paid but in this day and age of international transfer pricing and sophisticated tax management I cant imagine the banks pay anywhere near 30%.
My point is that our dear leaders are betraying their faithful by missing the chance to levy the MRRT on all big companies. Imagine all the pork barrelling that slush fund would provide.
Oh, and lastly, most of the 8 biggest companies are not cyclical businesses like the miners ie they dont suffer large swings in their ability to price their production like BHP does.
I wonder why our dear leaders dont put this on the table for real discussion? Oh thats right, lobbying from three companies ended up axing a prime minister when his pary lost their gumption and the banks are too terrifying a lobby group to even think about attacking.
For Australia to even be discussing a windfall tax on three corporates alone globally is a joke.
Why do you think an ounce of gold in Ghana is currently valued at $170-220 by the market while an ounce in Laverton is valued at $20-50? Could it be that the stock market doesnt want to have a bar of Aussie projects?
I still cant understand why Swan holds the post of treasurer. Surely he above all deserved the axe for his gross incompetence.
