IRON ORE ROYALTY REVENUE
1440. Hon Dr STEVE THOMAS to the minister representing the
Treasurer:
We will try this question.
(1) At the
current iron ore spot price of around $US83 a tonne, how much total additional
iron ore royalty revenue above the 2019–20 budget estimate would the
government be receiving per month?
(2) How much
additional iron ore royalty revenue above the 2019–20 budget estimate
has the government received from 1 July 2019 to 31 October 2019?
(3) To the most
recently available date, how much additional iron ore royalty revenue above the
2019–20 budget estimate has the government received for the 2019–20
financial year?
(4) Is any of this additional iron ore royalty revenue
being used to fund Labor's recent funding announcements,
including payroll tax relief, stamp duty rebates, and school and health
maintenance and upgrades?
Hon
STEPHEN DAWSON replied:
That is a very good list of things
we are doing! I thank the honourable member for some notice of the question.
(1)–(3) The government does not have monthly estimates of
iron ore royalties over the financial year. The 2019–20 budget
estimate is based on an average price over the course of the financial year.
Iron ore prices are notoriously volatile and the government will not take the
spot price on a particular day and extrapolate that price over the course of
the year. This dangerous approach risks replicating the mistakes of the former
Liberal–National government, which made lavish spending commitments
based on overly optimistic expectations of iron ore royalties. The government
will provide an updated iron ore price and royalty revenue forecast in the midyear
review to be released in December.
(4) Good
financial management allowed the funding of recent announcements related to the
payroll tax threshold, transfer duty on off-the-plan apartments and maintenance
in schools and hospitals. Central to this good financial management has been
limiting total expense growth in the first two years of the McGowan government
to just 4.4 per cent. This compares with total expense growth of 26 per cent
over the first two years of the former Liberal–National government.