"''We can proudly point to an economy that is 13 per cent larger than at the end of 2007 while half of all advanced countries are yet to get back to the starting line.''"
so government revenues should be 13% higher - but government revenues are 40% higher (watso forgets the exact number - but it is that type of quantum) - and expenditure is even higher.
the economy is 13% larger - but that is because of the flow through effects of the mining boom - nothing to do with swan.
one thing for sure, is that the super profits tax (ie the original tax dreamed up by henry and swan), would have been a disaster for the gold mining industry. the tax amounted to 40% nationalization, without compensation. watso is not too sure how the super profits tax would have affected other mining operations - but just think about gold mining...
basically, the super profits tax, creamed 40% of cash flow (after allowing for direct mining costs - which probably equate to the cash cost of production, that gold mining companies announce) - and out of the remaining 60% of cash flow, the gold mining company would have to meet all other costs - and if there is still something left over, then there is company tax to pay etc etc.
despite the high gold price, not many australian gold mining companies are making much money - just a random pick - but norton gold fields (ngf) is pushing through a lot of tonnes - and the cash cost, as shown in the last quarterly was $1377 - and sadly, there is not much margin, if the government takes 40% of the proceeds between the cash cost, and the sale proceeds - and then the company has to pay interest costs, allow for depreciation etc etc.
