Where is that $230Bn fund, Longy? Nowhere? Thought so.

longweekend58 wrote on Jan 20^th, 2015 at 11:46am:


What does any of that have to do with not relying on mining simply through a corporate tax system but via a resource rent tax on profits that goes directly into a sovereign wealth fund?

Something Howard should've setup from day one, but instead chose to hand out in the form of baby cash.

It'd be nice to be entirely self-sufficient in regard to oil, to have cheaper fuel and to make some cash by exporting it!

But what will affect households directly is how this massive new industry transforms the domestic gas market.
Now that the east coast is able to export gas (WA has been doing it since 1989) producers have the option of selling to buyers in Asia, who are willing to pay much, much more for it than we have been.

Historically, the east coast gas market was insulated from the rest of the world, and the domestic wholesale price was stable at about $3 to $4 a gigajoule. Now, there are buyers across Asia prepared to pay $12 or $13, even when energy markets are in turmoil as they are at the moment.

That translates to much higher domestic prices. When you account for the costs of converting the gas into LNG and shipping, it still suggests a domestic gas price of $6 to $8 in the wholesale market. That is, a 100 per cent increase from the long-term average.

So far, the NSW regulator has approved a 17.8 per cent rise in retail gas prices between 2014 and 2016, partly in response to the new export boom.  Victorians face a similar jump over the next few years because its producers can also sell their gas to the north.

And these increases are just the beginning, with further significant price rises expected for the next few years.

As this extra cost is passed on to users, it will push up utility bills significantly. A report by the Grattan Institute's Tony Wood last year estimated the average Melbourne household gas bill would jump $300 a year because of the changes over the next few years, while the average Sydney bill would rise by more than $100.

That compares with the extra $270 a year that Treasury estimated we'd be spending on gas and electricity because of the carbon price.


Read more: http://www.smh.com.au/business/comment-and-analysis/local-gas-prices-set-to-soar...

sir prince duke alevine wrote on Jan 20^th, 2015 at 12:14pm:


the biggest problem with a resource rent tax is that the states own the minerals as per the constitution and the feds cannot change that.  That is why royalties are paid to the states and not the feds.  We already have a Resource Rent Tax and it is the royalty system.  The states wont hand over the money and that cant change.  Even Labors idiotic mining tax made royalties made to the states as a DEDUCTION on the tax payable so as to try and get around this problem.  That is why in the end, it raised no money.

Australia doesn't have an oil export industry - yet.  So we have to work with what we have and to date the ONLY govt to ever save money, especially hundreds of Billions, was Howard.  and the biggest spender by far - BY FAR - was Rudd and Gillard.

Armchair_Politician wrote on Jan 20^th, 2015 at 12:23pm:



It would but as history & in fact present day demonstrates very few Australians will see any benefit at all & fuel will if anything cost more.

This is demonstrated by the Gas prices, we have huge reserves of natural gas but are selling it to China for a pittance & our local prices apparently must rise because local companies want to play on the International market.

Fresh out of todays paper

Quote:


Seems Tone lied about cost of living as well

so are you joining the illiterate boofheads to redefine the meaning of the word 'lie' now?

My commitment to the forgotten families of Australia is to ease your cost of living pressure.
Tony Abbott

Read more at http://www.brainyquote.com/quotes/authors/t/tony_abbott_2.html#mpooZAtlT8HRIYri.99

As this extra cost is passed on to users, it will push up utility bills significantly. A report by the Grattan Institute's Tony Wood last year estimated the average Melbourne household gas bill would jump $300 a year because of the changes over the next few years, while the average Sydney bill would rise by more than $100.