“There seems to be no floor. We are contemplating as low as $35 a tonne”…Mr Hockey said the revenue loss from iron ore would be exacerbated by write-downs in income tax revenue, a product of flat wages growth. The iron ore price collapse is also hitting nominal income growth which also constrains wages growth.
From the AFR, Treasurer Hockey has begun the Budget leaks starting with iron ore:
While promising the budget would contain a “credible path back to surplus”, Mr Hockey again declined to nominate when a surplus could eventuate…