Australian Federal Government revenues are collapsing? Wow. 8% growth (2010/2011), 10% growth (2011/2012), 5% growth (2012/2013). So what is “collapsing”? Certainly not Federal Government revenues. They have grown year after year. What is collapsing, yet again, is Australian Treasury ESTIMATES of future income. (And also probably any residual Australian Treasury credibility).
Nothing new here – and I am sure we are supposed to just move right along. Treasury has over estimated Fed Gov revenues for all 6 of the 6 Swan budgets. Now that Swan has moved to the back bench the new Treasurer has experienced a $12B revenue FORECAST write down for this year in just 11 weeks.
What, I think, is significant is that the Treasury in the Howard/Costello government era was consistently writing up revenue estimates, it has never done so under Rudd/Gillard/Rudd.