Twists and Turns of Resource Tax

Widely reported forecasts that the soaring AUD may diminish the tax revenue by as much as $10billion in the first five years have overshadowed a number of developments slowing the tax finalisation. While Federal Treasurer Wayne Swan desperately needs the new tax revenue to return to a balanced budget in the next two years, he and the prime minister face new and revived obstacles.
These are:
Unpredictable trade conditions
Major project vulnerability
Undermined political will
Opportunistic state taxation
Voters reacting to slow trickle down of resource benefits

The huge rerating of the AUD to parity against the USD, the international trade currency, is accompanied by growing uncertainty about future trade and currency relations, particularly with China, Australia’s single largest customer for iron ore and coal. Read more.