- High AUD and lower commodity prices blamed for dramatic fall in revenues
Treasurer Wayne Swan has cut a range of benefits to middle income families delaying tax cuts and increasing the health levy on income.
He has defended the cuts by highlighting a A$17bn drop in expected revenue since the previous budget with a total writedown of A$600bn over the next four years
He has also downgraded the revenue from the controversial 30% mining tax which is now expected to reap A$3.3bn instead of A$13.4bn over the next four years
He does hope to drag in A$4.2bn by using their leadership at the G20 to crack down of tax loopholes
It looks like the market doesn’t quite believe the growth forecast of 2.75% for 2013/14 with the back drop of slowing Chinese growth worries coming to the fore once again.
AUD/USD is finally managing to push through the support at 0.9940 down to 0.9920.
The falls are still slow as the country is still a good place to park your money from a yield perspective.
