How do you predict the income from Mining when currently the iron ore price is going south at an alarming rate...This will leave a massive shortfall in government income on tax on mining profits. Australia, today, rides on the Pandas back. If China economy slows, so will Australia's. IMO the financial crisis facing the world is far from over. It is only a matter of time before we will see another crash and next time we may not be so lucky. What about the fuel rebates for Industry, will they still have cheap fuel while all the citizens pay top $$$ for their petrol? Why not slow the introduction NDIS AND THE GONSKI education to say say 6 years+ How much would that save? While we all have great thoughts about the budget, maybe the most important thing that is facing Australians is TPP and the Bank in which will be coming up at the G20 in Brisbane come December 2014. WILL AUSTRALIA FOLLOW THE HERD/? Regards Errol 43
It makes good economic sense for industries (remember it's applicable for all "off road" use, farmers included) to pay less than the retail price for diesel. This helps keep costs down and encourages investment of capital in other areas ie jobs.
Yes. Businesses customarily pay wholesale prices for things, not retail. Otherwise the business couldn't exist. Then there would be no-one to pay the wages of the people who whine that industry rebates are unfair.
I was always taught that in the business world there is no such thing as a free lunch! Regards Errol 43
Who do you think would pay for the cost of removing the diesel fuel rebate - the very citizens you are concerned for.
What are you talking about? As shiney has already made apparent. The fuel levy is to pay for normal road infrastructure. Would you be telling the local trawler operator he's getting a free lunch because his diesel isn't paying for the roads? It's the same thing. The only reason there is a rebate is because it's easier to tax the lot and give a rebate to those that shouldn't be taxed later on. I can't find any documented evidence, but this week I heard on the news that the miners still pay a 6% tax on their fuel. I have no idea what for.
mmm...shiney - how on earth am I supposed to assess the value of the goods these industries provide if they are subsidised compared to what others (private & business) pay and hence do not operate in a free market? p.s Yes I went there!!!!!! p. p.p.s the diesel rebate is heavily rorted. It is not supposed to be used for vehicles used for private (ie. non business) purposes. I know for a fact it is.
Please rephrase your question boyracer, I don't know what you are getting at. And yes, there would be rorts no doubt, I'm sure Grazier Jim via Longreach fills his diesel Landcruiser from the tank behind the machinery shed before he heads off on his annual holiday to the family holiday home on the Sunshine Coast. He'd be fkn stupid not to. Edit to add: I just got it boyracer. You are a shitstirrer. :lol:
^^ you seem to be saying it is ok for there to be subsidies for some businesses. As per our lengthy tete-a-tete re. Australia Post and the fact it is subsidised via its regulated monopoly position and you disagreed with that, this would seem to be a position at odds with that. I found it slightly odd you would say "it makes good economic sense" - when it amounts to a subsidy, admittedly a subsidy of a taxed item which is just distortion layered upon distortion. Given farmers, for example, require roads to transport their goods to market and it is quite likely that roads to remote areas are subsidised by other taxpayers then they potentially are getting a free kick. It was a slightly (lot) tongue in cheek comment from me however so no need to take too seriously. edit to add: You do not know the half of it!
Tractors run on diesel, tractors plough paddocks not highways. It's not a subsidy but I'm happy if you view it that way, I understand what you are inferring using that term. The rebate is a recognition that the tax on energy is both ridiculous at its most basic level (I'm sure cavemen didn't tax fire use) and a recognition that the excise is supposed to be collected and spent for the construction and maintenance of roads - one could easily assume therefore that as the number of vehicles increase on our roads, the quality of our road system improves. :/ And as far as Auspost goes, it's a monopoly, farmers and mining companies and earthmoving companies compete in the market.