Peoples incomes were rising Nuttsie particularly in the highly paid mining sector. As a result people were paying more tax which the tax cuts partly offset, but the government still collected more overall. Add to that rising GST revenues especially from the record high fuel prices and high retail sales mostly made on credit (big mistake) and government revenues were riding high. Now you can stop laughing and maybe choke a little Nuttsie.
Government revenues are going to fall sharply this year and beyond so expect either big cutbacks in government services or big deficits for the next few years.
