Iron ore fear tax helps to boost budget

Original article by Ronald Mizen
The Australian Financial Review – Page: 8 : 14-Dec-20

The federal government’s Mid-Year Economic and Fiscal Outlook will reflect the surge in the price of iron ore since it handed down the Budget just two months ago. Its forecasts were based on an iron ore price of just $US55 per tonne free-on-board; the steel input is currently fetching around $US152 per tonne free-on-board, and the spot price has reached a seven-year high. Meanwhile, Deloitte Access Economics now expects 2020-21 GDP to be $33bn higher than had been forecast in the Budget, while the firm says the underlying cash deficit could be up to $3bn better than had been expected in October.


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