Barnett gets $600 million bailout

Monday, 20 April 2015

From Sky:

West Australian Treasurer Mike Nahan claims his state will pocket a $600 million payment from the federal government to make up for a shortfall in GST revenue.

There are conflicting messages around this but I’d guess it’s right. A pretty lousy amount, really, but still $600 million more than it should get and not enough to prevent downgrades.

It’s still not the end of the matter, just wait for iron ore to plunge below RIO’s breakeven.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.