Wednesday, January 23, 2019
Dear Bill: Don’t let Chris Bowen blow it on franking credits
ROBERT GOTTLIEBSEN
Today I feel the need to write an open letter to opposition leader Bill Shorten:
Dear Bill, your treasurer-in-waiting Chris Bowen has allowed himself to be advised by a group of people who did not understand how franking credits work in 2019, relying instead on old, outdated tax data.
They led him to devise what is arguably the worst taxation measure proposed in Australia since Harold Holt announced plans to drop tax deductibility for interest payments in November 1960.
Most ALP people now know that Chris has made a mistake.
I suspect he also knows, but can’t bring himself to admit the error. So he’s now descending into emotion — a sure sign of a person in trouble.
Except in situations of extreme voter anger, I don’t think any party in the developed world could be elected after a campaign based on the ALP’s retirement and pensioner tax (RPT). And as I will explain below, Bowen’s negative gearing plan is not in the same category as RPT.
I want good government for Australia and it’s important for the nation that both parties are able to govern. Part of the job of being prime minister is recognising when a minister has made an honest mistake and then helping that minister in the rectification process. Accordingly, Bill, that makes Chris’ mistake a test for you and not just your treasurer-in-waiting.
Paul Keating introduced dividend franking to avoid double taxation on company profits. It was brilliant policy. The idea was that wherever you earned a business profit, as a sole trader or as a large public company, there would be a similar rate of taxation.
When he introduced the policy, it’s true that franking credits had to be offset against earned or other investment income.
But over time we introduced a retirement system where low income/ asset people would still receive the pension. And, up to a limit, pensions from superannuation funds would be tax free. The cash franking credits became an integral part of that system and abolishing them requires major changes to the retirement system.
Not only did Chris not propose the required retired retirement system changes, but he’s dividing retirees with exactly the same assets and income into two baskets — those who receive cash franking credits and those that do not. The retirees who are to receive cash franking credits have their assets invested with industry funds and some big retail funds. The rest miss out.
Taxing people on the basis of who manages their money is without precedent in the developed world. I don’t think there is an Australian, including yourself, who would agree with such a policy. The fact that the big superannuation funds have non-retired members whom the retirees can sponge on to get their cash franking credits will cut no ice with anyone.
I don’t think leaders in the industry fund movement, including the likes of the likes of Greg Combet, Steve Bracks and Ian Silk, will want their funds carrying the long term tarnish of money obtained so unfairly. It always comes back to bite you and they are already winning fair and square.
And on the same theme, pensioners who were pensioners on a certain date will obtain cash franking credits but those that come after miss out and are therefore subject to RPT. It’s just wrong.
If the ALP is unhappy about franking credits and needs to raise money, then there are two clear courses: stop the racket that enables international shareholders to illegally obtain franking credits (I can’t imagine why the Coalition has not done this) or simply reduce the franking credits benefit to everyone (Australians might receive, say 95 per cent of their franking credit entitlement).
While I’d probably oppose such a measure, I’d have to recognise that it was introduced fairly and that everyone was treated equally.
Now the flow-on of the ALP’s RPT plans are emerging. As Eli Greenblat revealed yesterday, our largest investment company Australian Foundation as a non-favoured manager is reducing its holdings in BHP and Rio Tinto in anticipation of an ALP government and Chris Bowen is emotionally telling Australians to invest overseas. It’s a sure sign of a shadow minister who has become rattled by his own mistake. And he keeps saying he is attacking the rich. But only rich people who are stupid will be affected.
At the moment Bowen is also under pressure for his negative gearing policy. Had the ALP won the last election and Chris introduced that policy we would not be in the current mess. The problem now is that, partly in reaction to the negative gearing policy not being introduced, we have slashed lending. The severity of the bank lending clamps is a disaster. Putting the old Bowen plan on top of it now would be catastrophic. You must first normalise the banks and property finance, then you can look at the Bowen negative gearing plan. It is in a totally different category to RPT.
Footnote: The $235 million Amcil listed investment fund has joined Australian Foundation in being forced to in dump shares in BHP and pay an unscheduled divided in fear of the actions of a Shorten government.
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Give in and the crybullies win
Tim Blair gets it right:
Herald Sun cartoonist Mark Knight and wife Sophie last year attended an awards night in Canberra. A cartoon cop encounter ensued:
They bumped into Fairfax cartoonist Cathy Wilcox, one of a very few women in this game, who serves on the [Australian Cartoonists’ Association’s] committee.
She’d joined the Guardian’s Andrew Marlton in killing off a motion of support for Knight because of their reservations about the Serena cartoon. Her encounter with Knight grew testy
What irked her when she met Knight on the stairwell was how he stood his ground. “I thought there would’ve been some room to say, ‘I can see how it came across’ but he’s not budged an inch.”
They hate it when their targets refuse to back down. As Lionel Shriver once observed:
These people aren’t frightened. They want you to be frightened of them. And we’re not talking ‘microaggression’. PC police often prefer macroaggression, the kind that can get people sacked …
Bullies on the left ply weakness to conceal aggression, and today’s torrent of touchiness is bogus. No one’s truly in distress. No one’s feelings are hurt really.
This stuff is all about pushing other people around.
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VICTORIA'S POLICE GOONS
They are a disgrace. The won't touch you if you are a Muslim but all others are fair game. Three current reports below
Violent assault of a disability pensioner by a senior police officer inside a station
And despite all the fine words from the police about the case, he was not fired!
Footage has emerged of the violent moment a disability pensioner was assaulted by a senior police officer inside a station.
Despite damning CCTV vision, senior constable Michael Cooke managed to retain his position within Victoria Police and avoided conviction following the attack.
He was suspended with pay for 12 months as police conducted an internal investigation, the ABC revealed.
Pensioner Phil Dickson, who was 62 at the time of the attack, initially thought his broken knuckles and torn ligament in his shoulder were the results of a drunken fall.
'I could have been dead and I'm sure nobody would have asked, "Is there any CCTV footage about that?",' he told the ABC.
He was being held inside the station after being arrested for drink driving and assaulting a police officer, charges he later pleaded guilty to.
Medical records from the night of January 11, 2013, revealed Dickson had hit his head after being physically restrained inside his cell for being too intoxicated.
But Legal Aid fought for access to CCTV footage due to the extent of Mr Dickson's injuries. The video showed constable Cooke grabbing Mr Dickson by the scruff of his neck before throwing him to the ground. He was also made to remove his belt from his pants, causing them to fall to the floor.
Blood spatters were visible on the floor and paramedics were called.
Cooke was charged with common law assault in 2015 and pleaded guilty at Geelong Magistrates' Court. He was fined $500 and placed on a 12 month good behaviour bond without conviction.
Following the verdict, Victoria Police told Daily Mail Australia an internal investigation was also conducted and he was charged with a discipline offence relating to the assault.
A Victoria Police spokeswoman said they do not condone Cooke's actions. 'The community has every right to expect to be treated in a fair and professional manner when dealing with police. In the 2013 incident, this clearly did not happen,' she said. 'Make no mistake, this is not the manner in which we expect our officers to behave. We do not condone violence.'
'That is why the incident was thoroughly investigated by Professional Standards Command and the officer was charged with the criminal offence of recklessly cause injury.
The spokesperson said there was 'no doubt the CCTV footage was confronting', but stressed it was important to consider a range of factors before 'making a decision about an officer's ongoing employment.'
'After considering all of these matters a 12-month good behaviour bond, in line with the court decision, was determined appropriate internal disciplinary action.'
The officer resigned from Victoria Police in January 2018.
'The community should be assured that Victoria Police is committed to continually improving our internal processes for investigating complaints against its officers.'
'Since 2013 a number of new processes have been introduced, including an independent hearing officer (non-Victoria Police) overseeing all internal disciplinary matters and IBAC oversights complaints investigated by Victoria Police.'
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Doctor says she was assaulted by police while trying to assist injured man
A Melbourne doctor has alleged police assaulted her after she sought to help a barely conscious and bleeding man who was surrounded by officers in April 2018 — and that they then covered up the brutality.
Kim Proudlove, a stepmother of three who specialises in helping people with brain injuries, has spoken publicly about her ordeal and frustration with the Victoria Police complaints system.
Dr Proudlove does not fit the profile of the Victorians most likely to report an adverse experience with police — vulnerable or marginalised people less able to navigate the police complaint system.
She is an experienced doctor with a track record of helping people in need, including a cyclist and pedestrian badly injured in traffic accidents.
But when she tried to help a bleeding and apparently unconscious man surrounded by police, Dr Proudlove has alleged she was subjected to police brutality; after she filmed some of the alleged assault on her phone, she says police deleted it; and after she complained to police internal affairs, she was told by police they were considering charging her with resisting arrest.
Dr Proudlove's story is striking for another reason — her alleged assault occurred just 19 days after a major police brutality scandal was exposed.
In April 2018, 7.30 and The Age revealed explosive CCTV vision of police allegedly assaulting a Melbourne disability pensioner during a mental health welfare check.
That scandal prompted the charging of several officers along with widespread calls for reform of the police complaints system, calls that were later backed by a Victorian parliamentary committee.
Dr Proudlove's confrontation with police began just after 9:00pm on April 22 in Flinders Lane in Melbourne's CBD, after she noticed a man lying in the foetal position in a doorway, bleeding and barely conscious.
Within minutes, it would be Dr Proudlove who was bleeding.
She told 7.30 and The Age she approached the police surrounding the bleeding man and introduced herself as a doctor able to provide aid. "I was very concerned by the large pool of fresh blood, and that no-one was attending to him," she said.
She says police told her to go away, that an ambulance had been called and that the man's injuries were self-inflicted.
"I told them regardless of it being self-inflicted, the bleeding should be stopped with basic first aid while waiting for an ambulance. He wasn't moving and wasn't talking," she said.
Dr Proudlove said after she insisted the man needed help, police officers shoved her against a wall. After she began filming the police on her mobile phone, she says one of the officers attacked her.
"There was an older policeman that came towards me, violently threw me to the ground, put my hands behind my back, and repeatedly punched me in the head," she said.
"I kept asking them to stop and told them that they were hurting me. "I had a police officer put his weight into the back of my knee, which also was very painful.
"They handcuffed me then picked me up and took me to a police van and put me in the back."
Police confiscated her phone but returned it to her in the back of the van, where Dr Proudlove discovered that video she had recorded had been deleted.
After officers dropped her home in a police van, Dr Proudlove's husband raced her to hospital.
"My right ear needed tissue glue to close the wounds, I had a swollen and bruised lip, I had a bump on my head, my knee was extremely sore causing me to limp, and I had multiple other bruises and abrasions all over my body … I was also in shock," she said.
Medical scans confirmed that Dr Proudlove's knee was badly damaged. She had suffered a tibial plateau fracture and ACL rupture.
Dr Proudlove complained to the Police Standards Command about her treatment within hours of her ordeal. After this, she was told she was under criminal investigation for resisting arrest and may face serious charges.
In December, police told Dr Proudlove she would not be prosecuted.
In a statement, a police spokesperson said the case was subject to "an active Professional Standards Command investigation".
"The Senior Constable and Sergeant involved in the alleged incident have been transferred to other duties while the investigation is taking place," the statement said.
"We are unable to provide any further information as the investigation is ongoing."
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Arrested for someone else’s crime, a teen was left badly injured by the police
After police issued a suspect alert for an Aboriginal man who'd stolen a car, 18-year-old indigenous man Tommy Lovett - who was on his way to his grandma's house - was wrongly arrested. By the time his mother found out, Tommy was in hospital.
Even before the skinny Indigenous teenager was handcuffed and hurled into a fence, at least six police officers were worried an innocent man had been arrested.
The man wanted for stealing a vehicle and ramming it into a police car was, according to a description issued over police radio, a 40-year-old Aboriginal with a goatee.
The teenager splayed out on a pavement in Heidelberg on the morning of April 5, 2016, was also dark skinned. But he was only 18, with a baby face and no facial hair. Tommy Lovett had also committed no crime – moments before his arrest he had been riding his scooter to his grandma’s house.
But by the time officers were directed to continue the search for the actual suspect, Lovett’s body was bruised, grazed and bleeding. A neighbour would later recall hearing him quietly sobbing on the footpath.
Within hours, his mother, Doreen, would allege her son’s arrest was the result of racism and that he had been treated brutally by detectives. Police vehemently denied the claims and an internal investigation found nothing wrong with Lovett’s arrest.
Yet The Age has uncovered diary notes and statements from officers at the scene that raise serious questions about the official police version of events and Lovett’s handling by detectives. Among the files is a hand-scrawled diary note by a policeman who observed Lovett’s treatment and described the incident as “disturbing to say the least”.
Lovett’s case, along with several others uncovered by a joint Age-7.30 Report investigation, is set to reignite the debate about whether Victoria Police is capable of investigating its own. Also under scrutiny is the Andrews government’s delay in introducing police oversight reforms backed by a joint parliamentary committee, the state’s police watchdog and much of Victoria’s legal sector.
Doreen Lovett knew something was terribly wrong when police told her that her son Tommy had been arrested but was not in a police cell. He was in hospital.
Ms Lovett, a local Indigenous leader in Melbourne who works in Victoria’s criminal justice sector, raced to the Austin Hospital in Heidelberg to discover her son shaken and in pain. A doctor’s report of his injuries describes deep bruising and cuts over his body, swelling and abrasions on his forehead and prominent welts surrounding his eyes and cheeks. A gash on Lovett’s wrist had to be stitched up.
Lovett told his mother he had been scooting towards his grandma’s house when a plain-clothes detective emerged from the home and barked at Lovett to stop.
Lovett says the detective had a reputation among the local Indigenous community as a policeman to be avoided, so he scooted around the corner towards a police van and two uniform officers. They were searching for the 40-year-old, goatee-wearing suspect.
In a statement written after the incident, one of the policemen in the van, Constable K, describes Lovett seeking help from police.
“He stopped slightly behind our vehicle and in a loud voice asked if we can take him back to his … grandma's,” K wrote. “The male that stopped appeared to be young, of Aboriginal descent and looked somewhat distressed.”
From a distance of about 50 metres, the plain-clothes detective yelled at the uniform officers to arrest Lovett. He would later insist he believed Lovett was the wanted car thief and he had visited Lovett’s grandma’s house because it was frequented by men who fitted the suspect's description.
Other police officers were not so certain. Five other officers who attended the scene later wrote that they believed Lovett was “not the offender we were looking for”. A sixth policeman, who handcuffed Lovett, later wrote that he “was not sure why I was being directed to arrest this male as he did not match the description for the offender”.
Lovett was also confused. As he was cuffed, he asked why he was being detained. He also remembers being scared, especially as the first detective raced towards him. Lovett feared a beating.
Constable K wrote in his statement that Lovett was initially “not aggressive” but became “agitated due to the handcuffs”, which were cutting into his wrist.
The arrival of the plain-clothes detective also prompted a reaction in Lovett. He “became very resistive once the detective came up to him and targeted his head and neck. The detective had put his right arm into the jaw/neck area of the male and virtually took over from [the second arresting officer] Senior Constable R.”
Soon, two more plain-clothes detectives arrived at the scene, crowding over Lovett, who was “screaming” about being in pain. In his statement, Constable K noted the physical disparity between Lovett and the three detectives: Lovett “was a skinny handcuffed male that myself and SC R had easily controlled before”.
Lovett’s insulting of the first detective, said the constable, “caused a reaction”.
“The detective decided to grab the young male by the upper part of the body and do something I’m not sure what. As a result the male’s head was pushed into the timber plank and then further down towards the ground at which stage the two other detectives decided to engage and assist the detective. I did not see how or if the young male resisted in any way and did not see it necessary in any way to use force.”
K’s colleague, Constable R, said in his statement that after Lovett “called the detective an idiot … the detective … then picked [Lovett] up by his upper body and with the aid of both other detectives, threw [Lovett] into a brown wooden fence”. (A third policeman wrote an almost identical description of Lovett being thrown into a fence in his own statement.)
In the first detective’s statement, he justifies Lovett’s handling after he was handcuffed because of what he claimed was the 18-year-old's “potential for violence” (Lovett had previously been charged by police for assault but has never been convicted for any crime.)
All three detectives described Lovett in their own statements as acting violently and spitting at them near the end of his ordeal, which led to Lovett being capsicum sprayed. Lovett admits spitting, but claims he did so because his mouth was filled with blood.
He also alleges further humiliation – a policeman using water from a dog bowl to wash the capsicum spray from his face. (A police spokesperson said it was not known if police “put the water into a bowl to provide this after-care”.)
Next, Lovett was charged with resisting arrest and assaulting police. For months, the arrest and the charges loomed over Lovett. Doreen Lovett recalls her son withdrawing. “He stopped going out,” she says softly. “And he stopped smiling.”
Lovett might have been convicted if his Aboriginal Legal Service lawyer didn’t press police to hand over the diary entries and statements from all of the police at the scene. At first, police stalled in doing so. Then, unexpectedly in early 2017 after a magistrate ordered police to produce all files about the arrest, police told Lovett his charges would be withdrawn.
The teenager, who had been arrested for someone else’s crime only to face possible jail time for allegedly assaulting police, was suddenly told he had no case to answer.
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Posted by John J. Ray (M.A.; Ph.D.). For a daily critique of Leftist activities, see DISSECTING LEFTISM. To keep up with attacks on free speech see Tongue Tied. Also, don't forget your daily roundup of pro-environment but anti-Greenie news and commentary at GREENIE WATCH . Email me here
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