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An occasional pat on the back for Treasurer Scott Morrison today as he says he will not spend any iron ore windfall:
The federal government will frame a May budget with tax increases or spending cuts to make up for its blocked omnibus bill, despite a potential $30 billion revenue windfall caused by a booming iron ore price.
After the Nick Xenophon Team punched a $4 billion hole in the budget on Tuesday by declaring it would join Labor and the Greens and block in the Senate the bill containing a raft of welfare cuts, Treasurer Scott Morrison said the remaining options to recoup the revenue would have to be higher taxes and/or spending cuts elsewhere.
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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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