Iron Ore $119 USD per tonne. How will this affect GST income and WA?

Iron Ore

Iron ore is still on the up.

Vale is still in court in Brazil trying to work ok legislative barriers to reopening.

Gold is at $1400 USD.

The importance of iron ore to Western Australia’s economy | AusImm Bulletin

Great Read never knew WA is such a large producer.

Our clients in WA say nothing has changed though. Still very very quiet . 1 dealer is shutting show. So hoping the fortunes will change.

 

The Perth market overall is still going downhill thats for sure but many markets within Perth are stabilised now and some even going up. A lot of houses on my watch lists selling within 7-10 days.

 

where in perth, 10kmCBD?

 

Australia is suppose to be the largest producer of iron ore. With iron ore prices going up, the govt will be reaping heaps of dough in. And together with the lowering of interest rates, mama mia, the perfect storm is brewing. Something big will happen, I don 't know what, but its going to be big.

 

$123 USD today

Just going up at the moment.

Can some one find the estimate.


It was for every $10 the iron jumps the Federal government collects and extra $x in revenue.

 

A key thing to note 2 interest rate reductions and yet Australian dollar is firm at 69-70cents.

The iron ore is the big reason why the Aussie has not collapsed.

 

Every $10/tonne above that is worth an extra $1.2 billion to Government this year and $3.6 billion in 2019-20.


Iron ore prices are surging and some analysts are tipping it will hit levels not seen since 2014

 

Surely if this trend continues and the government is reaping cash hand over fist that they have to use it to stimulate economic growth via fiscal policy?

 

could you elaborate on that ? very interesting..

 

Yeah, it's called Tax Cuts. Let people keep more of their hard earned money.

 

short term thinking. The research does indicate that tax cuts moves money through the economy more quickly though but I don't believe it factors in big infra products gives longer lasting value to economy.

 

Coal is actually Australia’s biggest export and been carrying Australia for the past few as well
https://www.smh.com.au/business/the...-valuable-export-in-2018-20181220-p50nd4.html

The stuff in Queensland is of some of the highest quality coal in the world in the Bowen basin central Queensland ignore the Adani saga the past decade has seen billions of in new mines and expansions. Coal of all forms depending how it’s mixed runs inline with the ison ore as it’s needed to heat the ore and mixed in with it to form the final product

Over here in WA the inner blue chip areas have started to move and vacancy rates have come down but unemployment is still the highest or second highest in the country. Over the next 10 or so years there is around 108 billion dollars of construction projects in the works & that is the main driver of employment over here

The government is next to useless party A or B. The only real diversification we see in the budget is, iron ore, gold, nickel, lithium etc and meth or ice

The government has had it sweet for so long with the royalties cheque’s coming in it hasn’t really needed to do much to keep things afloat

 

i'd rather have tax cuts than roads to nowhere.

 

I'll try.

The way I see it, there will be too much pressure in the economy.

An analogous situation wouuld be for example, the recommended tyre pressure on my commodore wheels is 32 PSI. I usually give them 34. If I suddenly give them 44 and drive around then eventually ...... Kaboom! Blow out! I could also lose control and crash. The steering would be so light, it'll feel like I'm floating on air. Not to mention the uneven tyre wear.

 

I’d rather have fast rail connecting our major cities and regionals than tax cuts any day of the week.

As I’ve said time and time again. If you could live in say Echuca and be 1.5 hours into either Melbourne or Sydney CBD...
Opens up double the employment opportunities and halves the price of houses with way more spread population = less central demand.

 

I think there is a massive opportunity to build second tier cities (especially along the coast)

 

Who is it being sold to is what i dont understand?

Eg what new stimulus is actually driving these prices up?

 

Tax cuts from windfall income is wasteful. You make permanent changes to govt revenue through temporary income. The prices wont stay high forever and in the next slump the govt will be talking about more services needing to be cut because of the reduced revenue.

Spend it on infrastructure, bring existing projects forward and smooth out the ups and downs in the construction cycles. If there is nothing that warrants the spend now lock it away for future use.

 

+1 for this.
Investment in good public infrastructure will bring long term benefit. Unfortunately, not many politicians think longer than 3-4 years. All they care is to be re-elected so most policies are just for short term to buy votes.

 

This. Howard Costello team really screwed gov revenue by making permanent tax cuts based on a temporary boost in revenue via mining boom - economic vandalism and hence one of the, many, reasons they considered economic duds.