Australia to Rely on Mining Tax to Buffer Economy, Review Says

Australia will rely on income from its tax on mining profits to bolster the economy as gains in the currency hit manufacturing jobs, the Australian Financial Review reported, citing an interview with Treasurer Wayne Swan.

Assistance will probably focus on protecting jobs and helping workers rather than employers in areas hurt by the rise in the Australian dollar, the newspaper said.

The government has ruled out further aid to aluminum production, one of the hardest-hit sectors, and won’t implement industry-specific tax breaks, the Financial Review said.

Rising government revenue from a tax on commodity earnings will underpin changes to other areas of the tax system designed to help businesses cope with the currency impact, the newspaper reported, citing Swan.

To contact the reporter on this story: Robert Fenner in Melbourne at rfenner@bloomberg.net

To contact the editor responsible for this story: Jim McDonald at jmcdonald8@bloomberg.net

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