High prices for exports such as coking coal will boost the country’s terms of trade but global coal production has peaked and prices are unlikely to stay high
The rally in the price of key exports such as coal and iron ore that has promised a multibillion-dollar windfall for Australia’s treasurer, Scott Morrison, could be shortlived, economists have warned.
Hopes have risen that the federal budget could benefit from as much as $23bn in additional tax revenues from exports, thanks to higher prices, especially for coal which has more than doubled in price in the past four months.
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Source: Guardian Environment