Advertisement
From the AFR, Treasurer Hockey has begun the Budget leaks starting with iron ore:
“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.
While promising the budget would contain a “credible path back to surplus”, Mr Hockey again declined to nominate when a surplus could eventuate…
The full text of this article is available to MacroBusiness subscribers
Cancel at any time through our billing provider, Stripe
About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
Advertisement