SA UNIONS WELCOMES LONG CALLED FOR TAX CHANGES

3 May 2010

South Australia's peak representative body for workers, SA Unions welcomes the changes to taxation contained in the Henry Review as good for working families in our state.

SA Unions Secretary, Janet Giles says "the changes reflect key elements of SA Unions forward looking strategy document "A Fair Share of the Future", which examines ways of securing the state's economic growth in a social responsible manner".

"We are heartened by the federal government's vision for the future and ensuring we have an economic base in order to thrive as a society", Ms Giles says.

"In particular, we welcome the federal government's pledge to

• increase the taxes on mining companies
• increase the taxes on mining companies
• increase the employer contributions to superannuation to 12%

"Both these initiatives precisely reflect the SA Unions forward Agenda - A Fair Share of the Future", where we explicitly call for an increase in mining royalties.  South Australia has some of the lowest royalties in the country and these must be increased in order to support the communities in which the mines operate.  Mining companies make enormous profits - it's only fair that they contribute to the communities they benefit from... that means royalties to provide the roads, ports and social infrastructure critical for their operations", Ms Giles says.

The Rudd Government's announcement goes some way towards achieving this, although mining royalties in South Australia will need to increase further to bring the state into line with the social dividends enjoyed elsewhere", she says.

"It's time to stop the freeloading of mining companies where they expect the SA public to support their infrastructure and put very little back", Ms Giles says.

Ms Giles says the freeloading of mining companies where they expect the SA public to support their infrastructure and put very little back", Ms Giles says.

Ms Giles says the federal tax announcement will begin to restore the balance and ensure mining companies contribute to the community, not just take resources for their own profits.

She says the superannuation increase is similarly overdue and just as welcome.

South Australia has proportionally more low paid workers than any other state, and as a result they are facing a retirement in poverty.  The undertaking to increase the employer superannuation contribution to 12% is an important step towards a more dignified retirement for many thousands of SA workers.

Ms Giles says "South Australia has an important role to play in delivering a new financial fairness to all Australians".

"We urge our state Senator Nick Xenophon as well as the Greens, to support these changes in the Senate', Ms Giles says.