Revenue Increase Expected in Next Four Years

The federal government is going to gain over millions of dollars of revenue coming from its mining tax, according to a recent budget update from Treasury and Finance.

The report showed that cash receipts from its mineral resource rent tax may rise from $450 million to $6 billion in the next four years, even with a slow economic growth, high unemployment rate and huge deficits.
The new figures from this report is better than the projection earlier set by the government, which was at $10.5 billion for the next couple of years. The new figures gave the welcome boost it needed, after it was made known that Rio Tinto, a mining powerhouse, made no payments of resources tax in the previous year.

The fiscal also estimated that carbon pricing will also provide the government with $16.1 billion revenue in four years.
In the past few weeks, stocks under the Mining industry have improved in the Australian market. Rising commodity prices, as well as the increasing demand for industrial metal, iron ore and energy, boosted this good performance, according to the analysts.

Furthermore, the market seems to be growing more optimistic about the United States’ economic recovery and the softening of the China market.

Economists, however, said that the country may still have to deal with the fact that the revenue may become affected by a slow economy and trade declines, while noting that the report showed a weak medium-term fiscal projection and a cash surplus with no changes in policy. Debt is also estimated to fall by 2023-2024, contrary to a previous projection in 2021.

“We’ve got a revenue problem in the country,” says one analyst. “That’s not unusual when you’ve got declining company taxes. That’s why everyone’s running around talking about making cuts and savings, but I think part of the revenue is GST.