TPG has until Tuesday to counter M2’s bid for iiNet; 55 millionaires paid no tax in 2012-13: Midday Roundup

TPG has been given a deadline of end of Western Australian business hours on Tuesday to counter M2 Group’s $1.6 billion bid for iiNet.

TPG had offered $1.4 billion for iiNet before M2 unveiled its competing bid of $1.6 billion earlier this week.

iiNet chairman Michael Smith said in a statement to shareholders today once the iiNet board knows TPG’s position, it will provide a recommendation to shareholders as to which offer they should support.

“We have to recognise that evaluating the M2 and TPG proposals requires careful analysis given TPG is offering cash and M2 is offering shares in a significantly enlarged telecoms company,” Smith said.

“There is some judgment required on our part, however we do believe that based on the terms currently in front of us, the M2 proposal warrants triggering the matching right process with TPG.”

55 millionaires paid no tax in 2012-13

Fifty-five of Australia’s millionaires declared their taxable income during the 2012-13 financial years as less than the tax-free threshold of $18,200, reports Fairfax. 

The latest tax statistics from the Australian Tax Office also reveal Australia’s highest revenue generators lost $12.8 million during the same period.

Ten of the millionaires who managed to keep their taxable income below the low-income threshold gave $10.4 million to charities and political parties, while 15 millionaires lost a total of $2.7 million in that financial year while carrying over prior losses of $22.5 million.

Compared to 1.3 million Australian landlords who made a combined loss of $12 billion, the 55 millionaires generated $1.6 million dollars in rent.

More than three million people didn’t pay any tax in 2012-13, while 9.5 million Australians did. This compares to the 9.7 million Australians who paid tax in the previous financial year.

Despite e-tax allowing people to file tax returns electronically, only 2.8 million people chose to do so.

Taxpayers’ biggest deductions in 2012-13 were work expenses ($19.7 billion), negative gearing ($12 billion) and superannuation contributions ($2.9 billion). 

Shares down on open

Aussie shares have traded lower again this morning, although some ground has been recovered as the market heads into lunchtime.

Tristan K’Nell, head of trading at Quay Equities, said in a statement a negative lead from Wall Street and a “pull back in iron ore” combined to send local stocks lower this morning.

“Market turnover into lunch was quite strong at $2.125 billion,” K’Nell said.

“The market was missing a catalyst this week on a very light week of economic data locally. Naturally, the Reserve Bank interest rate [decision] next week is in focus, as well as the banks beginning reporting season next week with mixed expectations from the big brokers in regards to earnings and potential dividend growth.”

The S&P/ASX 200 benchmark was down 57.3 points to 5781.3 points at 11.44am AEST. On Wednesday, the Dow Jones closed 74.61 points, down 0.41% to 18035.5 points.