This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/world-australia-32281858

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Falling iron ore prices 'to wipe A$25bn off Australia revenues' Falling iron ore prices 'to wipe A$25bn off Australia revenues'
(5 minutes later)
Australia expects the plunging price of iron ore - its biggest export - to reduce revenue forecasts by A$25bn (£13bn; $19bn) over the next four years, Treasurer Joe Hockey has said.Australia expects the plunging price of iron ore - its biggest export - to reduce revenue forecasts by A$25bn (£13bn; $19bn) over the next four years, Treasurer Joe Hockey has said.
He told the Australian Financial Review (AFR) that his May budget would be based on the anticipated price of iron ore falling further, to $35 a tonne.He told the Australian Financial Review (AFR) that his May budget would be based on the anticipated price of iron ore falling further, to $35 a tonne.
Iron ore is currently trading at $47 a tonne - down from $120 a tonne in 2013.Iron ore is currently trading at $47 a tonne - down from $120 a tonne in 2013.
The drop has been blamed partly on falling demand in China.The drop has been blamed partly on falling demand in China.
The estimated price of $35 a tonne is even lower than the conservative forecast from December's budget update, which assumed prices would fall to $60 a tonne.The estimated price of $35 a tonne is even lower than the conservative forecast from December's budget update, which assumed prices would fall to $60 a tonne.
"There seems to be no floor, we are contemplating as low as $35 a tonne," Mr Hockey told the AFR."There seems to be no floor, we are contemplating as low as $35 a tonne," Mr Hockey told the AFR.
He said every fall of $10 in the price of the ore cost the Australian economy A$2.5bn in revenue.He said every fall of $10 in the price of the ore cost the Australian economy A$2.5bn in revenue.
Mr Hockey is due to present his budget on 12 May.Mr Hockey is due to present his budget on 12 May.
He told the AFR the budget would contain "a credible path back to surplus" but refused to say when a surplus may be achieved.He told the AFR the budget would contain "a credible path back to surplus" but refused to say when a surplus may be achieved.
He also could not guarantee that the deficit may not worsen again.He also could not guarantee that the deficit may not worsen again.
He said the government would have to continue pursuing structural savings, which have included unpopular cuts to health and welfare budgets.He said the government would have to continue pursuing structural savings, which have included unpopular cuts to health and welfare budgets.
The drop in the value of iron ore has been linked to a slowdown in China, as well as on steady output from Chinese producers who are competing with major Australian mining companies. In a separate interview with ABC News Breakfast on Monday, Mr Hockey said there was "no doubt" iron ore prices had a big impact on the budget.
But, he said, the government would not impose new taxes to compensate for the lost revenue.
The drop in the value of iron ore has been linked to a slowdown in China, as well as to steady output from Chinese producers who are competing with major Australian mining companies.