National issue

  1. 7,442 Posts.
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    Due to reduced revenues from Iron Ore impacting on both State
    and Commonwealth Government more than on the bottom line of Rio, BHP & FMG
    (these companies are partially compensating for the drop in price of IO by pumping out more product)
    the Commonwealt and the WA Governments should review their taxing /royalty arrangements with these companies.

    The reason for the drop in IO prices is partially due to these majors deciding to increase production by more
    than the lift in demand leaving the Commonwealth and the WA Governments as non-contributing loosers.
    The obvious Government solution would be to tie tax/royalties to volume and not to profit.

    The ATO found in 2009 that 68 out of Australia's top companies had offices in tax havens and anonymous
    overseas bank accounts. So out Governments' jurisdictions that are confined to our borders should simply
    tax on volume and not price which is capable of transfer pricing shenannigans.

    The Abbott Government should not have removed the MRRT without having an influence on production
    caps. Perhaps Malcolm Turnbull when he becomes PM can address this issue?
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