CHART OF THE DAY: The Growing Tax Write-Downs Affecting Australia's 2012-13 Budget

Photo:

Australian Prime Minister Julia Gillard today said weaker tax revenue would have a $12 billion impact on the budget bottom line. This chart shows cumulative revenue write-downs for the 2012-13 year.

In a speech, Gillard explained the impact lower tax revenues have on the federal budget, 15 days off from its official release date.

“The Pharaoh might have kept one fifth part of the grain from the field but the Tax Commissioner collects in dollars and cents,” she said.

“So even if the economy is growing as much as expected, when prices are growing much less than expected, tax grows much less too.

“The ‘bottom line for the Budget bottom line’ is this: the amount of tax revenue the Government has collected so far this financial year is already $7.5 billion less than was forecast last October.

“Treasury now estimates that this reduction will increase to around $12 billion by the end of the financial year,” she explained.

Read the Prime Minister’s full speech here.

Follow Business Insider Australia on Facebook and Twitter

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.