Iron Ore Price Collapse Causes $13 billion Hole in WA Budget

Perth now has reported that the collapse in the price of iron ore could pose a threat to $13 billion in royalties from the WA Budget over the next four years.

As quoted in the market news,

It comes as insiders say WA is unlikely to get any long-term change to how the goods and services tax is distributed.

Dr Nahan told The Sunday Times the free fall in the iron ore price, which sank to a 10-year low of less than $US50 a tonne this week, would punch a $3.6 billion hole in the 2015-16 Budget alone.

Over the forward estimates, WA stands to lose 12 per cent of the state’s total revenues.

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