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Updated March 17, 2012 07:47:30

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Okay actuality goes…

On the actual alien off-chance that there is anyone out there who has activate this week’s back-and-forth about aggregation tax absolutely bewildering, I anticipation it ability be advantageous to achieve the anniversary with a brisk, common epitomize of what’s what, and who’s up whom, aggregation tax-wise.

Here’s how it works: The government wants to accession taxes on mining companies (the mining tax) so that it can lower taxes for added companies – abounding of which, clashing some mining companies, absolutely do currently pay tax.

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The Coalition doesn’t appetite to accession taxes on mining companies. By extension, the Coalition is appropriately additionally stoutly adjoin to any of the nice things the Government affairs to do with the money, like acid aggregation tax for added companies, alike admitting acid aggregation tax for added companies is contrarily article the Coalition brand to anticipate of as one of its “things”.

The Coalition’s action to the mining tax is so absolute, in fact, that Wayne Swan could affiance to draft the absolute gain on VSU tattoos and busts of Bob Menzies and they still wouldn’t budge.

Meanwhile, the Greens do appetite to accession taxes on mining companies, and their alone above beef with the Government’s plan is that it doesn’t absorb anywhere a abundant tax actuality levied on anywhere a abundant miners. But they’ll booty what they can get. And they’re accept with blurred aggregation tax for added companies, aloof so continued as those companies accept a about-face of beneath than $2 million, and their assembly curve do not accommodate traces of nuts.* 

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If this action is not adapted to their satisfaction, the Greens will aloof go advanced and vote with the Government to accession taxes on miners afterwards blurred aggregation tax for anyone at all; a apple in which all companies pay added tax is a apple in which Greens are about able to alive absolutely happily, should advance appear to shove.

And the Coalition, actuality axiomatically adjoin to not alone the mining tax but any action arising from its loins, will band up with the Greens to vote bottomward the aggregation tax cut, alike admitting this will feel awfully awe-inspiring for everyone, and accomplish for some absolutely awkward cantankerous bank baby allocution while the voting’s absolutely happening.

But from this point on, unfortunately, things activate to get complicated.

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The Coalition is about adjoin accretion aggregation tax. That’s aloof a beeline apprehend of the aggregation handbook. But there’s an exception. To the acute abhorrence of some of his colleagues, Tony Abbott is insisting that ladies who casting votes his way in acceptable numbers at the aing acclamation will accept a aces Gift With Purchase – a $3.3bn paid affectionate leave scheme.

This arrangement is to be adjourned by a 1.5 per cent aggregation tax access for Australia’s 3200 best assisting companies, amid which one is advantaged to accept mining companies would be amply represented. (Mr Abbott’s arrangement is acquiescently acclaimed by the Greens, who accept of ample companies actuality flensed in the interests of continued feeding. As you can imagine, the Greens’ beat of approval does little to annihilate the paid-parental-leave agitation ancient forth the Action advanced bench.)

The Coalition has an institutional disgusting activity about hitting up big business for things. And Mr Abbott’s popularisation of the byword “great big new tax” rather enhances the abashment of the free-market Liberal types who feel that slapping a GBNT on for paid affectionate leave is rather off-piste, organisationally. Mr Abbott is altogether acquainted of this affect amid his colleagues. That’s why he didn’t acquaint them afore he appear the policy.

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During the 2010 election, the Coalition activate a way about the appearing impasse; Mr Abbott kept his 1.5c added aggregation tax on big business, but additionally promised a generalised aggregation tax cut of 1.5c. This created a rather adorned situation; baby businesses got a tax cut of 1.5c in the dollar, while bigger ones copped both a tax access and a tax cut, both of 1.5c. In the Coalition’s d plan, these two adverse pieces of budgetary tinkering would aish anniversary added out for ample companies in a complicated aught sum game, the alone apparent aftereffect of which would be bags of women advisers aback throwing themselves (electorally speaking) at Mr Abbott. Sort of the tax-policy agnate of the Lynx ad.

And during the 2010 acclamation campaign, Mr Abbott aloof about got abroad with it. There were one or two added things activity on, afterwards all, and what with the Labor Party borrowing the Coalition’s bound aegis action and the Coalition advancement on Labor’s automated relations policy, aback the anticipation of Tony Abbott giving big business $3 billion with one duke and whipping it abroad with the added didn’t alike accomplish the Top Five Awe-inspiring Things To Happen on the 2010 attack trail.

Could it fly again? Hmmm. Interesting. Mr Abbott’s assurance to “show women that the Coalition gets it” has not abated, and he insists that the promised paid affectionate leave arrangement will afresh affection in aing year’s Coalition attack literature.  His assurance to account the assessment on big business with a appeasing 1.5c aggregation tax cut, though, is beneath robust; all he would say on the amount this anniversary is that the Coalition would action a “modest” cut.

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Company tax cuts appropriately become addition of the Coalition’s imponderables. But in the accomplished week, Mr Abbott has assuredly completed his accumulating of positions on the issue, accepting now abnormally been both for and adjoin ascent taxes on mining companies, for and adjoin adopting the aggregation tax rate, and for and adjoin acid it. Apart from condoning the Coalition for Aggregation Tax Yahtzee, the allowances are unclear.

* I fabricated that allotment up.

Annabel Crabb is the ABC’s arch online political writer. View her abounding contour here.

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Topics: government-and-politics, federal-government, liberals, alp, tax, abbott-tony

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