So YOU are now responsible for the 'hidden' State tax introduced at the behest of a certain well known Investment bank.
As State's cannot levy taxes, certain bank (a couple of decades back) went to most State Govts and told them how to get around the 'cannot levy a tax'...
Answer: regulate the rate of return guaranteed for any spending on 'capital investment or maintenance' and link the senior execs remuneration to the 'annual' dividend paid to the State Govt - so they won't spill the beans.
That is why the 'gold plating' of the poles, wires and other capital items occured Australia-wide which has resulted in Australian electricity retail prices going from amongst cheapest in OECD to now one of the highest DESPITE having the equal lowest cost of power generation (thanks La Trobe Valley smokestacks).
Similarly with the right to operate toll roads (also sold at a mulitple of earnings) - so bump up earnings and 'tax' on residents and businesses in the State, help 'consultants' pockets tens (and hundreds) of millions in fees, line up 'directorships' post-political career and repay donors' generosity thousand-fold.
Same investment bank gurus even boasted at a lunch one day (after 7th bottle of red) that secret to really 'crushing the grapes' with toll roads is to charge high enough tolls to put people off using them too much as a 5-8% reduction in 'published' capacity can see a 30-40% reduction in maintenance capex.
The wheel has indeed turned...
So unrealistic (noncompetitive prices for water [desal plants], electricity [gold-plating], gas [removal of domestic regulation], toll roads [user gouging]) State Govt introduced rorts make Australia less competitive (or Federal Govt approvals...gas landed in Japan and China at 1/6th current domestic price AND locked in at same nominal price for the next 26 years) and the jobs flow offshore.
Thus reducing paid employment, relative wages etc directly hitting amount workers can put into super....
As we roll into the next 'bonus' season.
