| Before the panic of the Greek bailout took hold | | | | on retirement. So one has to ask the question and-if |
| earlier in the trading week starting 3 May, the | | | | you're like me-come to the conclusion that the two |
| Australian stock market traded down as investors | | | | policy decisions are somehow linked. |
| dumped their mining stocks. The reason for this was | | | | Coal is undoubtedly Australia's biggest product |
| the newly announced tax the Labor government | | | | accounting for around 20% of its exports on |
| proposed on the weekend to help fund | | | | average. Australia has also long been the world's |
| superannuation for millions of Australians at 12% of | | | | biggest exporter of coal. But coal burning is a major |
| each workers' salary. He also announced a 2% | | | | cause of CO2 pollution which in a way makes |
| reduction in business tax for small businesses. To help | | | | Australia is one of the world's biggest polluters by |
| pay for the extra retirement handouts and buffer | | | | proxy. That wouldn't sit well with a Prime Minister |
| the tax cuts to small businesses the Rudd | | | | who touted his climate change credentials, and having |
| government said it would levy the mining companies | | | | made an election promise to do something to arrest |
| with a 40% tax on profits. | | | | the rate of global climate change, eventually saw his |
| Of course mining magnates and opposition politicians | | | | bill quashed in parliament by an opposition back flip. |
| were fuming. But middle Australians were probably | | | | So not able to introduce a tax on emissions Kevin |
| somewhat indifferent to the handout they won't see | | | | Rudd and treasurer Wayne Swann have introduced a |
| until they retire. Small businesses realised that much | | | | superannuation tax, something that will make any |
| of the money from their lower taxes would also end | | | | politician who opposes it look bad for doing so even |
| up going into their employees' super funds. | | | | in the eyes of many climate change skeptics. The |
| Why would the prime minister and his treasurer want | | | | result will be the same. Australian power companies |
| to penalise the largest income earning industry in his | | | | aren't going to start importing cheaper foreign coal. |
| country? Rudd said it was because all Australians had | | | | They will just take the higher prices offered by local |
| a right to benefit from the sale of Australia's geology | | | | mining companies and pass them on to consumers. |
| and not just the foreign owners and investors in the | | | | It's an ETS by stealth. In the end it will be Australian |
| big mining companies. | | | | workers and small business owners who will be |
| However this major tax reform initiative came barely | | | | topping up their retirement funds out of their own |
| a week after Kevin Rudd put his Emissions Trading | | | | pockets while power companies and mining |
| Scheme (ETS) on hold until 2013, a move that helped | | | | companies will all get their cuts along the way. |
| his former arch rival Malcolm Turnbull change his mind | | | | |