Mining tax shortfall revealed – Swan’s surplus evaporates

16/08/10

Wayne Swan must urgently explain revelations that the revised MRRT will not raise the claimed $10.5 billion in revenue which underpins his dubious future budget surplus.

It is reported today in The Australian that according to Erica Smythe, a member of the government’s MRRT policy implementation group, the amount that the revised tax will raise is uncertain.

Ms Smythe said there is “no modelling” and “it’s hard to see it raising $10.5 bn in its first three years”.

The Coalition understands that the actual figure discussed is closer to $3.3 billion over three years.

Today in Queensland, a key mining state, Mr Swan must outline what changes he will make to the Government’s economic programme in light of what could be massive shortfalls in Labor’s projected mining tax revenue.

In a week when economic management has been brought to the forefront of the campaign Wayne Swan has a lot of explaining to do.

While Mr Swan talks about threats to his imaginary surpluses, it is today clear that the greatest threat to any future surpluses is the re-election of the Labor Government with Wayne Swan as Treasurer.

This is further confirmation that Wayne Swan will never deliver a surplus budget, and will continue to borrow at more than $100 million per day to fund Labor’s reckless and wasteful spending.