From the front page of the Budget 2013 wrap-around of the Financial Review15 May 2013: Iron Ore, coal prices key to revenue It may be this year’s single most important underlying budget assumption – the price for Australian iron ore is forecast to average $110 a tonne in 2013-14 before falling 9 per cent the following year. For the first time Treasury has included a prediction for both iron ore and coal prices, which together account for well over half the nation’s exports. If prices fall more than expected, revenue will be hard hit through lower mining company tax receipts and imposts such as the mineral resource rent tax.
I note that this is the view of the Treasury, which is supposed to be independant of the government, but one is left wondering.
It is perhaps a couple of months since a poster provided a link to a table of forecast iron ore prices which I recall had Macquarie forecasting $140 per tonne and The World Bank $150.
Most economic figures used by Labor seem to turn out grossly incorrect and I expect there will be no difference with these.
Cantankerous Jim
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