Huge Corporate Rort with Petroleum Resource Rent Tax
24 April 2022
Foreign companies are paying no tax due to deficiencies in the Petroleum Resource Rent Tax (PRRT). You may recall that the Rudd government tried to bring in a realistic tax based on the one that they have in Norway with a sovereign wealth fund set up to tide the country over a rainy day (like a COVID epidemic perhaps). The extent of the tax avoided is currently 13% of GDP!
Rudd was targeted by a combination of the miners and Murdoch, who he was trying to stop getting a virtual monopoly of the Australian media.
When Rudd fell, Gillard came in and introduced an alternative tax, which allowed her to save face, but one commentator some time later noted that the increase in miners’ profits that year was almost exactly what Rudd’s tax would have raised, and the new tax raised almost nothing. It was also said that the Tax Office had not modelled the new tax, and it came from the miners. This fits the theory that it was a face-saver so that Australians would still think that the government was actually in control.
Here we are a few years later, with a whole election debate is about tax, tax cuts, handouts and the cost of living, yet neither of the major parties have the guts to call out the real tax avoiders, who actually changed the legislation in their favour. The Greens do and for that they are called radical lefties!
The government takes credit for the COVID bounce-back recovery, which has nothing to do with their policies, and for the low unemployment rate which relates to the lack of backpackers and students, who usually do the dirtiest and least safe jobs for sub-award wages, not to mention the definition of ‘employment‘ as having at least one hour of work a week. The claimed 4% unemployment rate is actually a bad joke.
Here is an article in Crikey from Bernard Keane: