Letters of 16 April 2021: Holgate cloud hangs over board – The Australian Financial Review

Adam Mikka, Caves Beach, NSW

Our leadership crushes people too

Christine Holgate may have tripped over a highly technical hurdle in the Public Governance, Performance and Accountability Act but in economic substance what she did is covered by the fringe benefits law and done in any other context would be unexceptional.We think we are better than the authoritarian regimes we sanctimoniously criticise but we are not we just crush people differently.

Peter Haggstrom, Bondi Beach, NSW

Cut personal, not corporate, tax rates

John Kehoe is right and the OECD is wrong (Big business 30pc tax rate cuts growth, April 15). Personal income tax cuts are long overdue. The personal marginal income tax rate should not exceed the company tax rate on personal annual incomes up to $300,000. Income tax between individuals, companies and superannuation needs to be in balance. We have a way to go.With a sensible personal income tax regime, the incentive to negative gear and top up superannuation contributions to avoid tax is reduced. Incentive to work is encouraged. There is less need for top-up bonuses.One expects certain dumbness from the OECD in relation to commentary on the Australian taxation system. Given our resource-based economy, we would be mad to reduce the company tax rate. Our dividend imputation system means the corporate tax rate does not need to be reduced. A 30 per company tax rate is the sweet spot. The small company tax rate should be reinstated to 30 per cent rather than the large company tax rate reduced.The company tax rate is not in the top 10 reasons to invest. Taxation is an afterthought in the investment decision-making process. Business investment and working capital requirements are finance- rather than taxation-related. The company tax rate has no effect on productivity. It should also be borne in mind that company structures are used to avoid higher personal tax rates and effectively utilised as a secondary form of superannuation.

Graeme Troy, Wagstaffe, NSW

Beijing not keen on geopolitical harmonyChinas communist government does not appear to understand that respect is a two-way street. It is a supremacist regime that views all other nations and cultures as being inferior to it. And treats them, accordingly. Not a formula for geopolitical harmony.

Michael J Gamble, Belmont, Vic

Origin should rethink its hydrogen exports

It would seem at first glance that Origin Energy hasnt fully done its homework (Origin signs Townsville hydrogen export accord, April 15). It is to be congratulated for looking to the future with ambitions for hydrogen but for export, ammonia is a better form of hydrogen for transport due to its greater energy density, lower handling cost and by being in liquid form.A further point is that with exporting of hydrogen, Origin is getting ahead of itself as hydrogen will be needed here for storage for seasonal power generation and in low wind/solar situations. If we had a national energy plan of any sort this would of course be spelt out. The random development of this countrys future energy needs continues in its haphazard way because the debate has been so dramatically skewed by incumbent interests and an out-of-touch government.

Robert Brown, Camberwell, Vic

Lack of service from big super funds

Tony Boyds article (RBA study exposures super flaws, Chanticleer, April 13) was on the mark in one important aspect. The large retail and industry funds may well compete on price but they certainly do not compete on service.The commentary exposed the flaw in large super fund offers. They seemingly dont and cant offer advice to members who are financially illiterate and require an advisory service.Asset allocation advice is crucial at times of crisis and it should be givenby professionals who care about their clients. While there is a costto financial advice there is a greater cost in not receiving it.

John Abernethy, director, Clime Investment Management Limited, Sydney, NSW

Gobbledegook cant explain RBAs stance

The RBA should take comfort from rising house prices ... says Coolabah Capital Investments, whose RBA model predicts house prices will rise 14-36 per cent in the next three years, according to research similar to the Reserve Banks modelling (RBA model predicts 25pc house price rise, April 15).The reason for the RBAs supposed comfort is because higher asset prices are a key part of the transmission mechanism of both conventional and unconventional monetary policy, whatever that gobbledegook means.These increases, via the 0.1 per cent interest rate policy, are deliberate RBA/government policy. This policy must be reviewed as almost permanent, near-zero interest rates and rising house prices cause permanent hardship.

Malcolm Cameron, Camberwell, Vic

Read more:

Letters of 16 April 2021: Holgate cloud hangs over board - The Australian Financial Review