Opposition Leader Kim Beazley has been caught out.
In his Budget reply Mr Beazley claimed that “The minerals boom is putting an extra $160 billion straight into this government’s pockets.”
In a speech to the Australia Israel Chamber of Commerce he claimed that “The resources boom has channelled $160 billion in extra tax revenue straight into the government’s coffers.”
These claims are false.
The total estimated receipts from all company tax over this year and the total forward estimates is only $285 billion.
2005-06 |
2006-07 |
2007-08 |
2008-09 |
2009-10 |
|
Companies ($m) |
49,800 |
56,130 |
58,620 |
59,170 |
61,010 |
Mining contributes around 4 per cent of Gross Domestic Product.
Treasury’s estimate of the boost to company tax receipts from higher commodity prices is less than $16 billion over the forward estimates.
Mr Beazley’s claim is out by at least a factor of ten.
This illustrates yet again Mr Beazley’s lack of attention to detail, his laziness, and lack of understanding of economic policy.