Australia mining tax revenue downgraded over $1bn

Australia's 30% iron ore and coal profit tax is projected to add $824 million in government revenue this fiscal year, down from the October forecast of $2.2 billion.

Over the next four years, the mining tax is seen adding $3.7 billion less in revenue than previously forecast.

The downgrade is bad news for Prime Minister Julia Gillard's hopes of re-election this September as tax revenue decline across the board has already caused the ruling Labor party to give up its promise of a balanced budget.

Australia's Green party is using the downgrade to push for higher mining industry taxes.

 

Sources: The Australian; David Fickling and Jason Scott reporting for Bloomberg