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What other things Jim Chalmers could tax as Aussies face big slugs - on top of booze, tobacco, property... (the list goes on!): PETER VAN ONSELEN

What other things Jim Chalmers could tax as Aussies face big slugs - on top of booze, tobacco, property... (the list goes on!): PETER VAN ONSELEN

Daily Mail​2 days ago

Labor is back in power for at least another three years - given the size of its thumping election victory it's more staying there for another six years at a minimum.
And with that certainty comes instant talk of new taxes, despite election commitments to the contrary.
Labor's climate and energy spokesman, Chris Bowen, has said that he's open to a carbon tariff on certain products to help Australia meet its 2030 emissions targets.
Labor backbencher and medical doctor Mike Freelander wants a sugar tax to help tackle obesity and diabetes.
Then there is the super tax set to be legislated when parliament returns at the end of July.
This new tax was at least part of Labor's election manifesto, even if it was hardly a central issue during the campaign.
And there is speculation that negative gearing concessions and perhaps even the capital gains tax (CGT) break too are up for discussion.
The problem with all of the above isn't that changes to the tax and spend system should be off limits.
It's not even that most of the options being looked at weren't flagged at the election, or that a number of them were specifically ruled out.
The real issue is that what is being looked at is piecemeal and not part of a proper tax reform package that balances tax increases with tax cuts, thereby improving the efficiency of the system at the same time as ensuring that government taxes and spending don't just keep increasing.
The pre-election budget already highlighted that the tax-to-GDP ratio is at near record levels, with spending as a percentage of GDP even higher.
The government uses the latter to justify more taxes, rather than as a reason to stop the record spending because it's unsustainable.
I have no problem in principle with sin taxes such as on sugary products. They mirror other sin taxes on tobacco, alcohol or on industry designed to push down emissons.
There is a logic to such a shake-up, as long as cutting other taxes forms part of the discussion.
But Australia has shied away from wholesale tax reform ever since Kevin Rudd ignored many of Ken Henry's recommendations in his 2009 tax reform paper, and when Malcolm Turnbull junked the tax and federation white papers Tony Abbott commissioned before losing the prime ministership in a coup.
Boomers with more than $3million in super are set to be slugged if the government can get its proposal past the Senate at the end of July
Instead these taxes are embraced not as part of a wider review to improve efficiencies and better target who and what to tax, but as a simple revenue grab to keep chasing growing spending which needs to be reined in.
The design of the superannuation tax will, in decades to come, turn it into a virtual inheritance tax, given that it's not indexed and will over time engulf many more Australians ' super savings than it will at the point of implementation.
The flagging of other taxes to be debated and likely introduced in coming budgets is a sign that Labor is confident in its victory.
The size of its victory will neuter the Coalition for years to come.
But that confidence should extend to emulating the reforming credentials of the Hawke and Howard administrations.
Reforming the GST is another area of tax that needs to be looked at, again with tax cuts in other areas (such as on income taxes for example) as part of the discussion.
Let's hope that the growing calls within Labor for higher taxes isn't just as a case of Labor's back - and so are the taxes.

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Chinese supermarket shoppers reveal how Donald Trump's brutal tariff move has impacted Aussie beef
Chinese supermarket shoppers reveal how Donald Trump's brutal tariff move has impacted Aussie beef

Daily Mail​

timean hour ago

  • Daily Mail​

Chinese supermarket shoppers reveal how Donald Trump's brutal tariff move has impacted Aussie beef

Supermarkets in China have beefed up on Aussie meat amid tariff tensions between the US and the Asian superpower. Australian beef exports to China have soared in recent months in the wake of US president Donald Trump 's sweeping 'liberation day' tariffs regime earlier in the year. The rival economic superpowers have most recently accused each other of violating a tariff truce struck in Geneva last month. A Chinese woman shared vision of the meat section of her local supermarket, where shelves were filled with Australian beef where US products were previously stocked. She held up a 300g package of grain fed Angus beef as she complimented Australian growers. 'I guess I'm having Australian beef for dinner tonight, instead of American beef,' the woman said in English. 'And, honestly, because of the food quality, I probably trust Australian beef better. 'This box of beef right here is 50 RMB which is about $7 USD [AU$10.82].' @ China ditches American beef and chose Australian beef instead after this tariff war and I'm not complaining 😌🇦🇺🥩 #china #chinese #australia #australian #aussie #usa #america #american #tradewar #tariff #tariffwar #chinatiktok #travelinchina #chinatravel #xiaohongshu #rednote #viral #trend ♬ original sound - The Chinese woman then took a brutal swipe at the US. 'So to answer the question, China ain't hurting,' she said. 'If anything, I think we're probably doing even better because now we have better beef that tastes better and at a better price. 'So thank you Trump for that.' It comes after an American expat echoed similar sentiments when he stumbled across Australian Wagyu beef in a high-end Shanghai grocery store for $46 CYN ($9 AUD). 'I was going to buy some meat for dinner tonight and I was going to get some ground beef, so what used to be here is American ground beef and now … it says Australian ground beef,' the content creator explained in a TikTok video. 'The whole idea that China is hurting because of the tariffs, they're not, because they just buy from other places because they're not as dependent on the US. 'So China ain't hurting, and I guess we're all gonna start eating Australian beef in China now. I'm sure it tastes good so welcome to the new world.' Meat and Livestock Australia data showed a hefty increase in the nation's grain fed beef exports to China in 2025. More than 21,000 tonnes of Australian beef arrived in China in February and March, representing a 40 per cent increase on the same time last year. In April, Australia exported a record 37,000 tonnes of beef in a single month. China bought a third of that total. Australian exporters were capitalising on record levels of supply, according to experts. But MLA's global market analyst Tim Jackson was hesitant to attribute China's growing appetite for Australian meat to the ongoing trade war with the US. 'It's difficult to say at the moment, these are fairly early figures and we'd need to wait for more information to come out and get a better understanding of that trade dynamic,' he previously told the ABC. The beef trade between the US and China – worth an estimated AU$2.5billion to the Americans – has been largely halted by reciprocal tariff measures. The US Meat Federation stated 'the majority of US beef production is now ineligible for China' due to trade restrictions in April. 'This impasse definitely hit our March beef shipments harder and the severe impact will continue until China lives up to its commitments under the Phase One Economic and Trade Agreement.' In April, global meat analyst Brett Stuart said that Australia was the 'lone supplier' of high-quality, white fat marbled beef in China. '(US beef) sales to China have fallen to zero … and not only is the market now closed based on the March 16 production date, but the combined retaliation tariffs by China now take the tariff on US beef to 116 per cent, a level that will quickly halt trade.' On Friday, US Trade Representative Jamieson Greer accused China of ' violating' a trade agreement made in Geneva in May. The handshake agreement between the world's two largest economies was widely seen as a way to tamper tensions. The agreement made between Mr Greer, Treasury Secretary Scott Bessent and top Chinese officials stipulated that the two countries would unwind tariffs and trade restrictions on certain critical minerals. Mr Greer accused China of slow-walking that process during the interview Friday. China was hit with a tariff rate in excess of 145 percent earlier this year before the agreement, but the rate then came down to around 30 percent. Trump said he expected to talk to Chinese President Xi Jinping during an Oval Office press conference with Department of Government Efficiency (DOGE) leader Elon Musk on Friday.

Cameron doubts he'll ever reach $3m in super. So how do young people feel about Labor's plan?
Cameron doubts he'll ever reach $3m in super. So how do young people feel about Labor's plan?

The Guardian

timean hour ago

  • The Guardian

Cameron doubts he'll ever reach $3m in super. So how do young people feel about Labor's plan?

Cameron Upton has been working since he turned 16, and at 22 has just $4,000.92 in his superannuation account. The Canberra university student believes there is little chance his account will ever breach the $3m mark above which Labor plans to double the tax rate on earnings to 30%. 'That is so dramatically unobtainable for a large swath of the population that they shouldn't even be worrying about it,' says the 22-year-old, who checks his balance regularly and discusses fund options with his friends. 'It is important that we do think about the risk, but I feel like this is so [high] in the far-flung reaches of great wealth. 'I basically know no one who would be affected.' The government's plan has been met with fierce criticism from the opposition and some commentators. The AMP economist Diana Mousina's back-of-the-envelope calculations that a 22-year-old on an average wage would end up retiring with a $3m balance sparked headlines such as 'Why your kids will pay Chalmers' 30pc tax on super'. By the time millennials are starting to retire in 2055, just one in 10 workers would have accumulated balances over $3m, Grattan Institute modelling has found. Mousina projects that will rise to 30-40%, or about a third of the population, by the 2060s. In mid-2022, the typical 25- to 29-year-old Australian had a super balance of just $17,000, Australian Taxation Office data shows. Phy Mei Liu, a 27-year-old from Melbourne, has more than double that – and is keenly aware it's higher than others her age. She says those in the $3m-plus bracket should welcome the chance to pay up. 'I would actually be very glad to pay that tax, because I know that it's funding the solutions,' she says, pointing to government spending on health, education and climate change as top priorities. 'It's a privilege to pay tax in a country like Australia.' Liu, who says she was paid none of her super entitlements during three years' working part-time in hospitality, knows her super growth would slow if she took time off work to have a child. Families can be $30,000 poorer in retirement than they would be if superannuation was paid on parental leave, advocates have estimated, though new entitlements paid from July may narrow that gap. Sign up for Guardian Australia's breaking news email A researcher in gender equality, Liu has seen the heightened risks of homelessness and health issues older women face due to systemic issues in retirement savings. Anyone with a seven-figure super balance is in a different boat, she says. 'Super was never meant to be a tax haven, but it [has] been used as such by wealthier people,' she says. Grattan Institute analysis has concluded that 'tax-free retirement earnings turn super into a taxpayer-funded inheritance scheme', in part due to tax breaks where high earners bypass the 45% income tax rate by contributing from their wages to superannuation, where they pay a 15% rate. Labor says its proposal to raise that 15% rate to 30% above the $3m threshold would affect 80,000 people, representing the top 0.5% of super balances. But in avoiding the 45% rate higher earners otherwise pay, they would still benefit from favourable tax conditions. Essential polling in 2023 found 18- to 34-year-olds supported the tax changes nearly as much as older Australians did, despite more of them believing they had a chance of accruing a $3m balance. One-third (34%) of the younger bracket thought they might end up paying the tax, more than double the share of 35- to 55-year-olds who said the same. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion Luke, a 22-year-old software engineer who has already accumulated about $20,000 in super, may reach the $3m threshold but isn't worried about paying more. 'If it does affect us, we're going to be in a really good position anyway,' says the Sydney local, who asked for his surname not be shared. 'I want to live in a country where the people who are well-off can support the people who need more help.' Even if young Australians are willing to contribute, many may not end up paying the tax. Critics of Labor's plan say younger generations will shoulder the biggest tax burden as wages and super balances inflate. Brendan Coates, an economic policy director at Grattan Institute, says that claim is 'nonsense'. About one in three workers will have super balances above $3m by 2065, according to Mousina's modelling, which assumes above-average earnings and working years but less-than-typical wages growth, fund returns and contributions. Kayshini Logeswaran, a 27-year-old financial analyst, wants the super system to be more equitable, as long as tax changes focus on those who can afford it. '[This] doesn't really impact those who are in more of the low- to middle-income threshold, which I think is good, however, over the long run [it could] be a burden,' she says. 'The cost of living is putting pressure on a lot of families … so maybe there can be strategies in place to actually alleviate that tax pressure.' But Coates is more interested in those affected in the next decade – the vast majority of whom will be older and wealthier, he says. 'This is one way we can ensure that older Australians are paying their fair share,' he says. 'Younger Australians [otherwise] are going to be on the hook for budget repair and the cost of an ageing population on their own.' The number of workers who would have to pay the tax would also be limited if the fixed $3m threshold was indexed upwards. The treasurer, Jim Chalmers, has said he expects a future government would lift the new tax's threshold; Coates believes an increase would likely be necessary by 2040 to avoid contradicting an existing cap on the tax-free transfer of super balances. The tax is due to come into effect on 1 July and is budgeted to raise $2.3bn in 2027-28, out of the $700bn or so the federal government collects annually in revenue. Liu sees it as a 'first step' towards a more even playing field for young workers. 'We're finally rebalancing the scales a little bit and closing that intergenerational gap across wealth,' she says.

A glimpse of hope, then another Aboriginal death in custody: ‘grief-stricken' campaigners mourn lack of progress
A glimpse of hope, then another Aboriginal death in custody: ‘grief-stricken' campaigners mourn lack of progress

The Guardian

timean hour ago

  • The Guardian

A glimpse of hope, then another Aboriginal death in custody: ‘grief-stricken' campaigners mourn lack of progress

The supermarket is silent except for wails of grief. A small procession makes a slow pilgrimage down aisle four of the Alice Springs Coles, where their loved one – a 24-year-old Warlpiri man with a disability – lost consciousness after being restrained by police. He later died in hospital. Outside, the man's grandfather, Warlpiri elder Ned Hargraves, addressed a crowd of hundreds from his mobility scooter. 'Enough is enough,' he said on Friday. 'This cannot keep going.' Five years after the Black Lives Matter movement promised a reckoning for racial injustice in Australia, the grim reality facing Aboriginal and Torres Strait Islander people is eerily familiar. In 2020, the nation was reeling from the fatal shooting of 19-year-old Kumanjayi Walker by Northern Territory police officer Zachary Rolfe in the central desert community of Yuendumu. Rolfe was charged with murder, but later acquitted. Sign up for Guardian Australia's breaking news email This month, as the community braced for the findings of a bruising two-year inquest into the death, they learned another young Warlpiri man from Yuendumu – now known as Kumanjayi White – had died after being restrained by police in the Coles supermarket in Alice Springs. 'We were looking forward to truly beginning our healing process,' Walker's cousin, Samara Fernandez-Brown, said in a statement. 'You have thrown us right back to the start, reopening wounds that were just beginning to scab over.' Police alleged White was shoplifting and said plainclothes officers stepped in after an altercation with a security guard. Hargraves criticised police for portraying his grandson as a criminal while the incident was under investigation. Following the deaths of both young men, the family called for investigations independent of the police– a demand Aboriginal communities and several inquiries have been making for decades. In White's case, police 'respectfully' rejected the request. Rallies are once again being held across Australia in solidarity with Yuendumu. Their calls echo those made in 2020, when record numbers of protesters defied Covid restrictions to demand action to prevent Indigenous people dying in prisons or police custody. At the time, Mililma May, a Danggalaba Kulumbirigin Tiwi woman, helped organise Darwin's largest-ever protest. 'That was a historic moment for Darwin,' she says. 'It did feel like there was momentum, and most importantly, it felt like the community was empowered and activated and determined. 'I am extremely grief-stricken with the position that we're at now, and how we went from bad to worse.' The independent senator Lidia Thorpe, a Gunnai, Gunditjmara and Djab Wurring woman, is similarly scathing about the lack of progress since 2020. 'To see so many people show up was an act of solidarity … you would think that some change would have happened as a result,' she says. 'There's a glimpse of hope and then that just gets taken away as soon as you have to deal with another death.' The solutions to preventing Indigenous deaths in custody have been 'sitting on the shelves' since 1991, says Thorpe, when a royal commission put forward 339 ways to stop them. Three decades later, only about two-thirds of the recommendations had been fully implemented, according to a review described as 'misleadingly positive' by academics. One change has been the real time reporting of deaths through an online dashboard run by the Australian Institute of Criminology. It shows 34 people have died in custody this year – 10 of them Indigenous. Prior to this, Guardian Australia's Deaths Inside database was the only regularly updated source of information. There have been other changes in response to tireless advocacy from families, but often with a caveat. Police in Western Australia agreed to train officers to use alternative restraints to the prone position, but refused to ban the technique outright. Public drunkenness was decriminalised in Victoria, but the laws took three years to come into effect. Spit hoods were banned in several jurisdictions, then reintroduced for Northern Territory children. The core advice of the royal commission – to reduce the number of Indigenous people in prison – appears to have been ignored or disregarded entirely. Despite signing a national agreement to close the gap in incarceration rates, states and territories have passed tough-on-crime measures that are locking up record numbers of Aboriginal and Torres Strait Islander people. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion Nerita Waight, the chief executive of the Victorian Aboriginal Legal Service, says governments prefer such 'kneejerk, short-term solutions' over deeper, systemic reform. 'They would rather pursue popular votes and pander to conservative media narratives than actually show a modicum of leadership on the issues that affect Aboriginal and Torres Strait Islander young people,' she says. Former Labor senator Pat Dodson has condemned the gross overrepresentation of First Nations children in the youth justice and child protection systems as an ongoing genocide. But while the calls for reform have only become more urgent, the level of public support appears to have waned. At least 20,000 people marched in Sydney after George Floyd's death in the US. A snap vigil in the city on Sunday night saw about 500 people brave the winter chill to gather on the steps of the town hall. 'We have seen the numbers drop,' says Paul Silva, an organiser of both Sydney events. 'I'll say it for what it is – people will tend to jump on the bandwagon when something is trending.' Thorpe says between the yawning gap in Indigenous disadvantage and the war in Gaza, people are feeling 'traumatised' and 'helpless'. 'We're kind of fatigued by genocide,' she says. May attributed the sense of apathy to a rise in disinformation on social media; which became more prolific throughout the pandemic, the Trump era and the failure of the Indigenous voice referendum. 'The way that people were accessing news and information was really distorted and dictated by their algorithms,' she says. 'I think it's emboldened the views of the right and the views of the racists.' For grieving families, the fight continues. Silva was 17 when his uncle, David Dungay Jr, died in Long Bay prison after being restrained in the prone position by guards. Harrowing footage of the incident, in which Dungay repeatedly says he cannot breathe, has been likened to the death of Floyd. A coroner found the guards involved in Dungay's death should not face disciplinary action and the NSW director of public prosecutions rejected the family's calls to lay criminal charges. After exhausting all other avenues, the Dungay family is still pursuing a complaint to the United Nations, in a bid to shine a global spotlight on his uncle's death. Now 27, Silva has become one of the loudest voices calling for justice through a portable speaker at Sydney's protest rallies. He is planning another in the coming days. The Dunghutti man regularly gets phone calls from distressed families whose loved ones have died lonely, violent deaths at the hands of the state. 'I sit on the phone and listen to them cry, and even cry with them,' he says. 'Deep down, I know that's something that my uncle would really want, and that's something he's guided me to do.' Indigenous Australians can call 13YARN on 13 92 76 for information and crisis support; or call Lifeline on 13 11 14, Mensline on 1300 789 978 or Beyond Blue on 1300 22 4636

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