Iron Reich threatens bailout blockade

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It’s wondrous to watch:

The West Australian understands that the Commonwealth Grants Commission has examined – but dismissed – WA Treasurer Mike Nahan’s proposal to overhaul the way mineral royalties are treated in the annual GST carve-up.

Asked what WA’s response would be to the GST system not changing, Dr Nahan answered: “Basic non-co-operation.”

WA is already blocking moves supported by all other States to lower the GST threshold on imported goods.

Let us recall that it was Dr Nahan that budgeted the following farce:

ScreenHunter_2680 Jun. 03 09.19
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Mining royalties made up 21% of Western Australian revenue in 2013-14, which was forecast to increase to 24% by 2017-18, with iron ore accounting for about 90% of total royalty income across the forecast period (see below chart and tables).

ScreenHunter_2694 Jun. 03 14.48
ScreenHunter_2695 Jun. 03 14.48
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How about you just resign, matey?

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.
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