Latest news with #HenryTaxReview
West Australian
2 days ago
- Business
- West Australian
CCIWA moves to end talk of new resource taxes as Treasurer Jim Chalmers assembles economic roundtable
WA's peak business lobby has warned the engine room of the nation's economy could be pushed 'further over the edge' if Jim Chalmers' economic roundtable proposes higher taxes for the mining and energy sectors. The Treasurer will convene a meeting of industry experts, business leaders, unions and policymakers for talks at a national economic summit in Canberra next month aimed at jump-starting Australia's dire levels of productivity. But representatives from some of the nation's biggest resource companies have been locked out of the three-day meeting. They instead met with Resources Minister Madeleine King late last week as part of a round of consultations among stakeholders ahead of the summit. The Chamber of Commerce and Industry WA on Sunday sought to fend off contentious proposals for a tax on the export of fossil fuels that could potentially raise $50 billion. Former treasury secretary Ken Henry — now chair of the Australian Climate and Biodiversity Foundation who has been invited to Dr Chalmers' roundtable — has renewed calls for a carbon tax, lashing former governments for dropping the tax. 'It still boggles the mind that we had the world's best carbon policy and then, for purely political reasons, decided that we can afford to do without it,' he told the National Press Club last week. Dr Henry, who authored the Henry Tax Review in 2010 to guide tax reforms over the next 10 to 20 years, also said there needed to be more 'spending discipline'. Resources companies, which account for the lion's share of national exports, fear they could become targets at the summit to offset tax cuts in other areas that will help attract investment, boost productivity and deliver reforms that could reshape Australia's reliance on income taxes. CCIWA acting chief executive Aaron Morey said Australia's global competitiveness was already being eroded daily as companies shift investment to more favourable jurisdictions overseas. Mr Morey said the lobby was concerned by proposals to target miners, who he said have paid $395 billion in taxes and royalties to governments over the past decade. 'Increasing the tax burden would take an already high-cost, high-risk investment environment and push it further over the edge,' he said. 'Industrial relations changes have increased costs and complexity. Approvals processes are gummed up in ever-growing bureaucracy. 'Energy is no longer a source of competitive advantage. And businesses in Australia face one of the highest overall tax burdens in the developed world. 'Mining supports thousands of regional jobs, underpins our export earnings and generation of wealth, and delivers the investment that lifts productivity and wages across the broader economy. 'Instead of higher taxes, the upcoming economic roundtable should be focused on repairing our global competitiveness.' Attorney-General Michelle Rowland on Sunday moved to head off a revolt from miners, saying the Government was 'not looking' at possible new taxes on the sector. While the heads of the likes of BHP and Fortescue were not invited to Dr Chalmers' summit, former WA treasurer Ben Wyatt — who now sits on the boards of Rio Tinto and Woodside Energy — was on Friday named among the 24 delegates. Dr Chalmers said the talks would focus on resilience, productivity and budget sustainability. 'It's an outstanding group of people who we believe will make a big contribution to the future direction of economic reform,' he said. 'While we can't invite representatives from every industry or organisation, everyone has the chance to have their say in this process with online submissions still open.'
Perth Now
7 days ago
- Business
- Perth Now
‘Mind boggles': Big call to bring back old tax
Former Treasury boss Ken Henry has renewed calls for a carbon tax, lashing former governments for dropping the tax. He said 'it still boggles the mind that we had the world's best carbon policy' and questioned: 'Why the hell did we ever drop it?' The carbon pricing scheme was introduced by Labor in 2012 and placed on about 500 of Australia's largest polluters. Under the policy, companies had to purchase credits to offset the amount of carbon produced, with the funds generated form the levy returned through tax cuts and increases to welfare payments. The measure was later repealed by the Abbott government in July 2014 and replaced with an offset scheme to incentivise companies to avoid emitting CO2 by earning carbon credits. Speaking at the National Press Club on Wednesday, Mr Henry, who was the Treasury secretary from 2001 to 2011, criticised the scrapping of the tax. 'It still boggles the mind that we had the world's best carbon policy and then, for purely political reasons, decided that we can afford to do without it,' he said, speaking as the chair of not-for-profit Australian Climate and Biodiversity Foundation. Former Treasury boss Ken Henry said 'why the hell did we ever drop it? when asked about the carbon tax. NewsWire/ Martin Ollman Credit: News Corp Australia 'A country that's capable of creating the best and then decides that it doesn't need anything at all – well, my God, of course we need a carbon tax.' Mr Henry urged the government to not 'give up' and fix Australia's 'broken' environmental laws, taking aim at the 'not fit for purpose' and outdated Environment Protection and Biodiversity Conservation Act 1999 (EPBC). 'Report after report tells the same story. The environment is not being protected. Biodiversity is not being conserved. Nature is in systemic decline,' he said. 'Of particular concern, they are incapable of supporting an economy in transition to net zero, and they are undermining productivity.' He noted that the government's pledge to erect 1.2 million homes by 2030 would require more land and transport, meaning more interaction with EPBC assessments. In strong criticism, he said there was 'no point in building a faster highway to hell', and while approvals needed to be granted faster, the environment needed to be protected. 'These projects, be they wind farms, solar farms, transmission lines, new housing developments, land-based carbon sequestration projects, new and enhanced transport corridors or critical minerals extraction and processing plants, must be delivered quickly and efficiently,' he said. Speaking more broadly about government spending, Dr Henry, who authored the Henry Tax Review in 2010 to guide tax reforms over the next 10 to 20 years, said there needed to be more 'spending discipline'. 'If the budget is to meet these growing spending pressures, then we've got two options. We either increase taxes, as a share of GDP, or we grow the economy faster,' he said, noting productivity growth had slumped from an average of 2.31 per cent in the '90s to 0.98 per cent in the last 25 years. 'That's a pretty fundamental difference. 'If we continue on that trajectory, as we said in 2002, we will have no option but to raise taxes, and quite significantly, by several percentage points of GDP … or cut spending.'
Sydney Morning Herald
09-05-2025
- Business
- Sydney Morning Herald
An election of no substance? It's time to call bollocks
The policy experts also seemed to miss Labor's plan to introduce a $1000 standard tax deduction. In a country with more accountants than farmers, anything that makes it easier for people to go about their business without interacting with the tax system is a major productivity win. Standard tax deductions occur around the world. All the way back in 2010, the Henry Tax Review advocated such a policy. It must be a win for consumers because the accountancy sector (which gets a tax-deductible clip from all the people who come into their offices with their shoe boxes of receipts) is already warning against it. In the March budget, Treasurer Jim Chalmers announced the government's plan to axe workplace non-compete clauses. The evidence of how the explosion in non-competes is holding back workers and the economy is clear. No, it was not big bang, shout it from the rooftops type of reform, but it clearly is productivity-enhancing policy. Which brings me to the next load of bollocks. What sort of campaign did critics want? Was it 2004, when Mark Latham tried to break John Howard's hand (and the prime minister failed to give a clear warning of WorkChoices)? Perhaps it was 1977, when the Liberal Party promised a 'fistful of cash' only to break that promise after being returned to office? We've had 'it's time' elections previously. Not just Gough Whitlam's famous victory in 1972, but also the 1996 election, where there was a distinct air of a publican calling last drinks on the incumbent government. Loading To find a real policy-heavy election campaign you have to go back to 1993 and 1998 when the GST were key features. The Coalition got whacked in 1993 while John Howard lost the two-party preferred vote in 1998. In 2019, Bill Shorten and his huge tax reform platform was repudiated by voters. The 2010 election was also filled with policy – taxation of the resources sector plus the government's prevarication over a price on carbon. These plans were part of what cost Kevin Rudd his job, and when Julia Gillard then went to the polls advocating tax changes that translated into the first hung parliament in more than 60 years. Speaking of Gillard, over the past week, there's been plenty of complaints that Albanese's success was partly due to the way it had 'demonised' Dutton. Those complaining on Dutton's behalf must have forgotten the way Gillard was treated during her entire term in office by her colleagues across the aisle. Perhaps the pictures of Tony Abbott and other members of the Coalition standing in front of posters calling her a witch, a liar and 'Bob Browns [sic] bitch' have been forgotten. Malcolm Fraser warned voters in 1983 they would have to hide their savings under their beds if Bob Hawke was elected. In the run-up to the 1990 election, The Australian declared then Liberal leader Andrew Peacock as 'all feathers, no meat'. And this campaign, Dutton accused Albanese of being a liar more times than you could count. Lost among all those who are demanding change or reform packages has been the lived experience of voters over the past 15 years. Starting with the global financial crisis and its enduring impact, the slowdown in wages growth, Donald Trump (versions one and two), COVID-19, the post-pandemic inflation surge, the war in Ukraine, the attack on Israel and its response across Gaza … it's a long list of disruptions. Voters wanting stability in the face of all that makes sense. Voters did get a tough battle between two parties and two leaders prepared to vigorously argue their case. It may not have soared to great heights or scratched the policy itch for many, but ultimately the campaign was aimed at ordinary people just trying to go about their lives. Compared with what's on offer in other nations, give me that any day of the week.
The Age
09-05-2025
- Business
- The Age
An election of no substance? It's time to call bollocks
The policy experts also seemed to miss Labor's plan to introduce a $1000 standard tax deduction. In a country with more accountants than farmers, anything that makes it easier for people to go about their business without interacting with the tax system is a major productivity win. Standard tax deductions occur around the world. All the way back in 2010, the Henry Tax Review advocated such a policy. It must be a win for consumers because the accountancy sector (which gets a tax-deductible clip from all the people who come into their offices with their shoe boxes of receipts) is already warning against it. In the March budget, Treasurer Jim Chalmers announced the government's plan to axe workplace non-compete clauses. The evidence of how the explosion in non-competes is holding back workers and the economy is clear. No, it was not big bang, shout it from the rooftops type of reform, but it clearly is productivity-enhancing policy. Which brings me to the next load of bollocks. What sort of campaign did critics want? Was it 2004, when Mark Latham tried to break John Howard's hand (and the prime minister failed to give a clear warning of WorkChoices)? Perhaps it was 1977, when the Liberal Party promised a 'fistful of cash' only to break that promise after being returned to office? We've had 'it's time' elections previously. Not just Gough Whitlam's famous victory in 1972, but also the 1996 election, where there was a distinct air of a publican calling last drinks on the incumbent government. Loading To find a real policy-heavy election campaign you have to go back to 1993 and 1998 when the GST were key features. The Coalition got whacked in 1993 while John Howard lost the two-party preferred vote in 1998. In 2019, Bill Shorten and his huge tax reform platform was repudiated by voters. The 2010 election was also filled with policy – taxation of the resources sector plus the government's prevarication over a price on carbon. These plans were part of what cost Kevin Rudd his job, and when Julia Gillard then went to the polls advocating tax changes that translated into the first hung parliament in more than 60 years. Speaking of Gillard, over the past week, there's been plenty of complaints that Albanese's success was partly due to the way it had 'demonised' Dutton. Those complaining on Dutton's behalf must have forgotten the way Gillard was treated during her entire term in office by her colleagues across the aisle. Perhaps the pictures of Tony Abbott and other members of the Coalition standing in front of posters calling her a witch, a liar and 'Bob Browns [sic] bitch' have been forgotten. Malcolm Fraser warned voters in 1983 they would have to hide their savings under their beds if Bob Hawke was elected. In the run-up to the 1990 election, The Australian declared then Liberal leader Andrew Peacock as 'all feathers, no meat'. And this campaign, Dutton accused Albanese of being a liar more times than you could count. Lost among all those who are demanding change or reform packages has been the lived experience of voters over the past 15 years. Starting with the global financial crisis and its enduring impact, the slowdown in wages growth, Donald Trump (versions one and two), COVID-19, the post-pandemic inflation surge, the war in Ukraine, the attack on Israel and its response across Gaza … it's a long list of disruptions. Voters wanting stability in the face of all that makes sense. Voters did get a tough battle between two parties and two leaders prepared to vigorously argue their case. It may not have soared to great heights or scratched the policy itch for many, but ultimately the campaign was aimed at ordinary people just trying to go about their lives. Compared with what's on offer in other nations, give me that any day of the week.
ABC News
24-04-2025
- Business
- ABC News
Former treasury boss looking past logging to expanded carbon credit scheme
Decades before Ken Henry became a household name in Canberra, he spent many of his days in the New South Wales bush. The former Treasury Department boss grew up on the Mid North Coast, where his father logged native forests as a worker in the timber industry. "On the weekends I would go out with my father and my brothers to places where he worked as a contractor," Dr Henry said. "We would talk to him about what he was doing and why he was doing it. "I've had this interest in the condition of the natural environment since I was a kid." Dr Henry says he is now focused on the environment full-time after leaving the public service. ( ABC News: Jack Ailwood ) That nature-loving child would go on to become one of Australia's most prominent economists, serving as treasury secretary during the years of the Rudd and Howard governments. Photo shows A graphic showing a range of reader comments about potential issues in Australia's 2025 federal election. What do you need to know before you vote in the upcoming federal election? What would you ask the candidates? Have Your Say. But his passion for the environment never faded. During his decade-long Canberra career, he would rescue injured animals and nurse them back to health on his family's property outside the capital. Nearly 15 years after leaving the public service, he is now focused on the environment full-time. A new effort to keep carbon in forests As chairman of the Australian Climate and Biodiversity Foundation, the architect of the 'Henry Tax Review' is now pursuing another ambitious plan aimed at protecting native forests from logging. "We have been developing a carbon method that would pay the managers of these forests to store carbon in the forests," he said. " It sounds like I'm saying money grows on trees — and in a way, I am. " The plan aims to keep carbon stored in living trees, with the concept proposed to the Commonwealth by the NSW government. ( ABC News: Jack Ailwood ) The NSW government further developed the concept and proposed it to the Commonwealth. Under the proposal, state forests would be added to the nation's existing carbon credit scheme, which allows businesses or individuals to earn credits through projects that reduce or avoid emissions, such as reforestation. The state government agencies that manage the forests could then earn carbon credits by slowing or stopping logging. Big industrial polluters could then buy those credits to offset their emissions as the nation moves towards its goal of reaching net zero by 2050. Read more about the federal election: Want even more? Here's where you can find all our 2025 Modelling commissioned by the climate group found about 1,700 full-time jobs could be created in NSW if the money was reinvested in forest management and bushfire mitigation. "We estimate over the next 15 years that would generate revenue of around $100 million a year," Dr Henry said. The plan has been criticised by the timber industry and the federal opposition. ( ABC News: Jack Ailwood ) Timber industry has grave concerns Last year, Climate Change Minister Chris Bowen confirmed the proposed carbon credit method was one of four selected for priority development by experts from the environment department. The plan has been criticised by the timber industry and the federal opposition. The Australian Forest Products Association (AFPA) argues the proposal would lead to mass job losses — claiming there are 8,900 hardwood workers in NSW alone. AFPA CEO Diana Hallam told the ABC the sector provided valuable products to the housing industry — such as decking and flooring. She argued Australia would be forced to import more wood if the logging of native forests slowed or stopped, claiming plantation timber was much lower quality than native hardwood and therefore not an adequate substitute. "Where is that timber going to come from?" she said. "We have some of the most stringent environmental standards in the world here when we harvest our forests." The Australian Forest Products Association argues the proposal would lead to mass job losses. ( ABC News: Jack Ailwood ) 'Not founded on the best science' Shadow Environment Minister Jonno Duniam described the proposed method as a "backdoor way for Labor to shut down our world-leading, sustainable native forest harvesting industry". "The method may sound good to some, but, in reality, it is not founded on the best science and evidence," he said in a statement to ABC News. Western Australia and Victoria banned the logging of native forests last year, but the operations are ongoing in NSW, Queensland and Tasmania. The NSW government pledged $80 million to establish a Great Koala National Park. ( ABC News: Donal Sheil ) The NSW Forestry Corporation manages about 2 million hectares of state forest and logs around 1 per cent each year, according to its website. The NSW government has indicated — if the proposed method is approved — it will consider using it to earn credits for the Great Koala National Park, which it has vowed to create on the state's Mid North Coast. Tasmania's Resources Minister Eric Abetz has previously confirmed the state would not support the proposal. Loading Having trouble seeing this form? Try
