Australia is the greatest place on earth because...
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Goreripper
Metal as fuck
Shannow
Stunt Plough Rider
FerretallicA
HMAS Slagdestroyer
Shannow
Stunt Plough Rider
Goreripper
Metal as fuck
Goreripper
Metal as fuck
Glenn Dyer @ crikey.com.au:
"Millions of Australians will lose from Tony Abbott's idea of taxing profitable companies to pay for his exaggerated version of the baby bonus.
People with superannuation, either in managed funds, run by retail or industry groups, or self- managed, will be the hardest hit, along with investors holding shares directly.
Big companies such as Telstra will be impacted at a time when its share price is already under pressure. With the Future Fund (Australian taxpayers), still owning a swag of shares in the company, we all will suffer.
In all the commentary about the absurdity of Abbott's 1.7% levy on the profits of Australia's 3000 most profitable companies such as in the Fairfax broadsheets this morning, one very, very important point has been lost.
There's has a lot of talk about the impact on costs and prices and employment. But that's marginal issues. The $2.7 billion a year, $11 billion-plus four-year cost of his idea will predominantly come from shareholders, which include nearly every one of the more than 10-plus million working people in this country.
According to Australian Stock Exchange figures "retail investors directly own slightly less than 20% of all listed equities, with domestic institutions owning slightly less than 40% and foreign investors slightly more than 40%."
So about 60% of all shares on the ASX are owned by Australians, one way or another, and these are concentrated in the four big banks, BHP and Rio Tinto, Woolworths, Wesfarmers, the AMP, AXA, Telstra and others with a market capitalisation of $1 billion or more, which in turn account for 90% of the market's valuation.
According to the ASX at the "end of 2009, a total of 175 companies had a market capitalisation greater than $1 billion, with 385 companies between $100 million-$1 billion, 534 companies between $20 million-$100 million and 855 companies below $20 million.
The companies valued below $20 million are unprofitable or barely profitable miners and small industrials. The bulk of the companies that will pay the tax are in the next groups, right to the 175 worth $1 billion or more, which is where investors concentrate.
This has been ignored by political commentators in the big papers and electronic media. (They are as removed from the real world of business as Abbott).
What they don't understand is that the easiest way for profitable companies to pay the tax will be to either cut dividends, or not increase them, even if profits are rising.
While some groups (accountants mainly) are saying companies can restructure to save tax, the stamp duty costs of doing this these days is prohibitive. The easiest way is simply to either cut dividends, or not increase them. Much easier than pushing up prices.
This will apply to all listed companies, as well as private groups. All make distributions one way or another. The listed companies make them to shareholders, which in most cases include super funds, both retail, industry and self-managed funds.
Other investors own shares in their own right and will lose directly. Self-funded retirees will be hurt more than anyone because they depend more on dividends for their income than do wage earners.
Because he will be taking earnings from companies, their share prices will be impacted, their prices will fall or no rise by as much because their dividend yields and price earnings ratios will be adversely impact. They are crucial measurements for investors in assessing the worth of listed companies as an investment.
Companies will underperform the market, which will underperform as a whole each year because $1 billion to $2 billion a year in earnings are being stripped out by this odd new tax.
Investors will take their money from the market (or not commit as much), to invest in other riskier or lower taxed investments."
Basically, if Abbot goes into the poll with this as a policy, he will be destroyed.
"Millions of Australians will lose from Tony Abbott's idea of taxing profitable companies to pay for his exaggerated version of the baby bonus.
People with superannuation, either in managed funds, run by retail or industry groups, or self- managed, will be the hardest hit, along with investors holding shares directly.
Big companies such as Telstra will be impacted at a time when its share price is already under pressure. With the Future Fund (Australian taxpayers), still owning a swag of shares in the company, we all will suffer.
In all the commentary about the absurdity of Abbott's 1.7% levy on the profits of Australia's 3000 most profitable companies such as in the Fairfax broadsheets this morning, one very, very important point has been lost.
There's has a lot of talk about the impact on costs and prices and employment. But that's marginal issues. The $2.7 billion a year, $11 billion-plus four-year cost of his idea will predominantly come from shareholders, which include nearly every one of the more than 10-plus million working people in this country.
According to Australian Stock Exchange figures "retail investors directly own slightly less than 20% of all listed equities, with domestic institutions owning slightly less than 40% and foreign investors slightly more than 40%."
So about 60% of all shares on the ASX are owned by Australians, one way or another, and these are concentrated in the four big banks, BHP and Rio Tinto, Woolworths, Wesfarmers, the AMP, AXA, Telstra and others with a market capitalisation of $1 billion or more, which in turn account for 90% of the market's valuation.
According to the ASX at the "end of 2009, a total of 175 companies had a market capitalisation greater than $1 billion, with 385 companies between $100 million-$1 billion, 534 companies between $20 million-$100 million and 855 companies below $20 million.
The companies valued below $20 million are unprofitable or barely profitable miners and small industrials. The bulk of the companies that will pay the tax are in the next groups, right to the 175 worth $1 billion or more, which is where investors concentrate.
This has been ignored by political commentators in the big papers and electronic media. (They are as removed from the real world of business as Abbott).
What they don't understand is that the easiest way for profitable companies to pay the tax will be to either cut dividends, or not increase them, even if profits are rising.
While some groups (accountants mainly) are saying companies can restructure to save tax, the stamp duty costs of doing this these days is prohibitive. The easiest way is simply to either cut dividends, or not increase them. Much easier than pushing up prices.
This will apply to all listed companies, as well as private groups. All make distributions one way or another. The listed companies make them to shareholders, which in most cases include super funds, both retail, industry and self-managed funds.
Other investors own shares in their own right and will lose directly. Self-funded retirees will be hurt more than anyone because they depend more on dividends for their income than do wage earners.
Because he will be taking earnings from companies, their share prices will be impacted, their prices will fall or no rise by as much because their dividend yields and price earnings ratios will be adversely impact. They are crucial measurements for investors in assessing the worth of listed companies as an investment.
Companies will underperform the market, which will underperform as a whole each year because $1 billion to $2 billion a year in earnings are being stripped out by this odd new tax.
Investors will take their money from the market (or not commit as much), to invest in other riskier or lower taxed investments."
Basically, if Abbot goes into the poll with this as a policy, he will be destroyed.
TinMan666
Member
i can't accept that they have any intention at all of implementing a policy like that. It would absolutely cripple business... I'm all for giving people (workers) a fair go and some assistance here and there, but 6 months full pay? No one's ever going to hire a woman again.
Goreripper
Metal as fuck
It's bullshit. It's policy-on-the-run and bad leadership. Abbott is a clown with no idea about real policy. You could argue that Rudd is the same, but he's already there, and a bunch of headless chooks could have rolled the Libs once they thought that WorkChoices was going to be a good idea. The facts are, the economy's still doing OK, unemployment is still pretty low, interest rates are still below what they were when Howard was in. The mum & pop investors and the cashed-up bogans are still relatively happy about the status quo, and they're the ones who change their vote against the government regardless of who it is when things start going wrong, so at this stage Abbott's really just holding the fort until a real leader comes through for the election after this one.
FerretallicA
HMAS Slagdestroyer
I don't support Abbott in general. I'll still be voting Libs but unless Brendan Nelson makes a surprise comeback it will be more for the sake of getting rid of Rudd than any endearing qualities of 'the other guy'.
Shannow
Stunt Plough Rider
So you'll hand out $75k in welfare to rich Mums to be and tax the top end of business to get it ?
You old conservative you.
You old conservative you.
Blitzkrieg
Master Exploder
More racism yesterday, from a colleague I didn't expect it from, and unlike FB I can't just delete him from my profile. I'll say it again, I hate living in such a white, narrow minded area.
Goreripper
Metal as fuck
I have to work with a racist, misogynist fuckwit. He irks me beyond words. Thought WorkChoices would have been awesome because it would have allowed him (he used to own an electrical appliances store) to hire and fire at will. Is almost proud of the fact he'd been sued for unfair dismissal a few times (and lost). Hated the idea of any form of bonuses or compensations for his employees. Now he's working with me making about 25% of what he used to (his business got wiped out by the GFC) and complains every time his pay is late, or doesn't get the right amount of overtime. Yet he remains unrepentant about the fact that he was a cunt of a boss.
Not really related to this thread, per se, but he's the kind of bloke the Liberal Party builds their entire platform around.
Not really related to this thread, per se, but he's the kind of bloke the Liberal Party builds their entire platform around.
Mark
Not blessed, or merciful
What's the job market like in Australia right now?
I seem to find, when we go back for hols, that the cost of living has skyrocketed in the last 8 years (but, again, that's 8 years worth of inflation, so perhaps it shouldn't be a surprise).
I seem to find, when we go back for hols, that the cost of living has skyrocketed in the last 8 years (but, again, that's 8 years worth of inflation, so perhaps it shouldn't be a surprise).
Blitzkrieg
Master Exploder
phlogiston
Bejabbers!
It's because the US dollar tanked against the AUD, but the prices haven't come down yet. Seems to be filtering through now though. Just bought a piece of guitar kit for $60 less than it was a month ago.
