Business

Gillard's budget position may be vindicated yet

THE surging price of iron ore could see the Gillard Government's budget position strengthen, despite reportedly no revenue from the mining tax for the second quarter since its introduction last year.

While The Australian reported on Monday the mining tax had returned no revenue to government coffers for the second consecutive quarter, the price of iron ore has surged from last year's lows to about $158 a tonne.

That increase could see the mining tax make up for at least some of the existing shortfall in tax revenue - and while it may not be enough to return to surplus, it could put a dent in the 2011-12 deficit of $43 billion.

Some economic forecasts have shown a return to stronger growth from Australia's biggest iron ore buyer, with Fitch Ratings' outlook predicting 3% to 4% growth in Chinese iron ore demand.

The Fitch outlook also forecast continued growth in Chinese steel demand, but only of less than 5% for the next few years.

HSBC chief economist Paul Bloxham told APN Newsdesk he expected China's demand for the commodity to be much healthier in 2013 than last year.

He said the current spike in prices was due to three main factors; the rising Chinese demand, a fall in Indian exports and a recent cyclone hindering exports from Western Australia.

And while the surging iron ore price could spell a better position for the government's budget, Deloitte Access Economics predicted in September it would only be temporary.

In its quarterly business outlook, Deloitte economists predicted a "pothole in growth in 2014-15", with the huge mining construction sector to slow before the expanding LNG exports hit their straps.

Topics:  budget economy hsbc iron ore julia gillard mining tax



Six hideaway bars to escape winter chill

THE last season of GoT finally uttered the words we’ve been waiting six seasons to hear and now that the weather has cooled down in Brisbane, “winter is here.”

Our six art gallery picks for a creative day out

Queensland's Gallery of Modern Art always has a fun, exciting and interesting exhibition on show for the whole family to enjoy.

YOU'D be mistaken in thinking Brisbane wasn't an arty city.

Brisbane's arts and culture events centre stage

You loved the film, now you're about to love the musical. Don't miss The Bodyguard The Musical in Brisbane this July.

THE arts and culture events you don't want to miss.

Homewares stores to fulfil your Instagram dreams

No Caption

You too can become an Insta-star with these fab stores.

Date nights under $50

Nothing is more romantic than a picnic with a cracking view.

NOT every date has to cost you a bomb.

Top 10 Brisbane experiences to cross off your bucket list

Do yourself a favour and get amongst the food truck scene. Eat Street is a great place to start.

A GOOD bucket list doesn’t have to span continents or cost millions.

Six mega sporting events you need to be at this year

Don't miss all the action trackside this season.

IF THERE is one thing Brisbane does damn well, it’s play host.

BREAKING: Bechtel worker's ATO challenge rejected

CASE REJECTED: The ATO advised Bechtel employees to resubmit their tax.

Tribunal hands down decision on Bechtel ATO dispute.

'Game changer' plan turns to chaotic bungle for Rocky road

Crews worked through the night to rip up and widen sections of Upper Dawson Rd to allow B-doubles to be diverted from Gladstone Rd. INSET: Cr Tony Williams.

Govt reluctant to answer questions over how diversion went wrong

'Catastrophic failure' put Central Queensland workers at risk

BLACK LUNG: Percy Verrall was diagnosed with black lung disease in 2015. He was the first Australian diagnosed with the disease in 30 years.

68 recommendations to raise health and safety standards

Local Partners

Six things you never knew about Men in Black

IT’S been 20 years since Men in Black first hit cinemas. Makes you feel old, doesn’t it?

10 strange stories behind famous sex scenes

Khaleesi and Khal Drogo in a steamy moment.

Every set has their own way of filming sex scenes

HBO spills new details on Game of Thrones’ final season

Game of Thrones’ eighth and final season will only have six episodes.

New details about what to expect from the eighth, final instalment.

Karl’s rant on Corby: ‘Made to look like idiots’

Karl Stefanovic is sick of hearing about Schapelle Corby.

Today co-host launched a tirade against Schapelle Corby media circus

Big Pineapple festival safety concerns as 100s walk home

LONG WALK HOME: Many festival goers opted to take a dangerous walk home due to transport difficulty following the Big Pineapple Festival in Woombye on Saturday.

Big Pineapple festival-goers have braved dangerous walks home

Shot at the live shows slips through Sally's fingers

Sally Skelton and Bojesse Pigram pictured after their battle performance on The Voice.

Sunshine Coast singer's dramatic elimination from The Voice

Ben Stiller and Christine Taylor split after 17 years

They were married in May 2000 and have two children, who they said will remain their priority.

Ben Stiller and his wife Christine Taylor have called it a day

New $46.7m counter-terrorism facility to be built in Wacol

Premier Annastacia Palaszczuk, pictured with Police Commisioner Ian Stewart, has announced plans to build a new counter-terrorism facility in Wacol.

The facility will be built over three years.

Home to a sex worker: Sordid history of iconic Coast shed

Milojevic Djordjevic's daughter Linda at the derelict shed on Yandina-Coolum Road.

The shed was once a liveable 'barrack'.

This is real estate's billion-dollar man

Bob Wolff at AREC with John McGrath of McGrath Real Estate.

They don’t call him the “Billion dollar man” for nothing

Man's amazing comeback from monster crisis

Pat O'Driscoll agents Penny Keating and Doug Webber sold 56 Agnes St, The Range at auction over the weekend.

NOT long ago, he sold his possessions to pay staff. Now he's back.

Deluge brings massive price rise for property near Rocky

BIG BUY: The Howard family handed over Yaamba's historic Balmoral property to the Harvey family on Thursday.

DOWNPOUR'S perfect timing entices buyer to pay huge dollars.

Ready to SELL your property?

Post Your Ad Here!