Company tax receipts to be revised down $8.5b in MYEFO
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The news: The government has revealed that it will downgrade mining exports and revise down company tax receipts in the Mid-Year Economic and Fiscal Outlook (MYEFO) on Wednesday.
Weakness in the Chinese economy and lower commodity values are behind the significant hit. This is the first time since 2020 that company tax receipts have been revised downwards.
The numbers: Mining exports will be downgraded by over $100 billion over the four years to 2027-28.
Company tax receipts will be revised downwards by $8.5 billion over this same time period.
What they said: "Challenges in the Chinese economy will have flow on effects for our own budget and that will be clear in Treasury’s forecasts on Wednesday," Treasurer Jim Chalmers said.
"The global economy is uncertain, the global outlook is unsettling and that’s weighing heavily on our economy. Pressures on the budget are intensifying, global volatility is a big part of the story and you'll see that in the mid-year update," he said.
"We’re getting the budget in much better nick and building up Australia’s buffers to manage global uncertainty but we’re not immune from challenges coming at us from around the world."
The source: Treasurer media release
