From The Australian:
The WA government, which has already been grappling with the fallout from the sudden and unexpected drop in iron ore royalty income, now faces further pressure as a result of a dramatic 40 per cent-plus fall in oil prices over the past six months.
The budget assumptions had modelled for oil to average between $US115 and $US122.70 a barrel between now and 2017-18. But the oil price has slumped towards just $US65 a barrel, a level not seen since early 2009.
The looming shortfall in oil revenues will further complicate the government’s efforts to win back the prized AAA credit rating that it lost in August.
Calculations by The Australian that apply current oil prices and exchange rates to the government’s forecast petroleum income results in a cumulative budget shortfall of about $877m over the next three years.
I imagine the same will be the case in Queensland. But not federally, given the huge project depreciation available in the early years, no revenue should have been budgeted for.
