The Grattan Institute think tank released a report today which says Australia spent nearly all of its mining boom cash or used it to fund unsustainable tax cuts.
The report, according to The Australian, found Australia benefited from $190 billion in revenue from higher commodity prices over the past ten years.
Of that, $182 billion has been either spent or devoted to tax cuts by the Howard, Rudd and Gillard governments.
“The benefit of record commodity prices was treated like recurrent income, and tax cut and spent away as if it would last forever,” the study’s author Jim Minifie told the newspaper.
According to the Aus, this does not include the $87 billion in stimulus spending by Kevin Rudd and former treasurer Wayne Swan following the financial crisis.
Minifie said it was not too late though, for the government to start saving more of its resources-driven tax revenue.
Read more here.
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