PERTH (miningweekly.com) – The Minerals Council of Australia (MCA) has welcomed the release of the Mid-Year Economic and Fiscal Outlook (MYEFO), saying it confirmed the mining industry’s vital contribution to the government’s improved fiscal position.

Federal Treasurer Josh Frydenberg on Monday said that while the budget was on track to return to surplus for the first time in 12 years, this surplus was now estimated at A$5-billion, compared with the previous estimate of A$7-billion.

“Despite significant revenue write-downs on the back of sustained global and domestic economic headwinds, surpluses of $5 billion this financial year and cumulative surpluses of $23.5 billion over the forward estimates are expected to be delivered,” Frydenberg said.

“The outlook for the Australian economy is positive. Gross domestic product (GDP) growth in the first three quarters of 2019 has been stronger than it was in the second half of 2018 with MYEFO confirming that the economy is forecast to grow by 2¼ per cent in 2019-20. 

“Growth is forecast to improve to 2¾ per cent in 2020-21, which is faster than any G7 nation and well above the OECD average of 1.6%.”

The Treasury has cited the mining industry’s record export revenues and an increase in mining investment as significant contributors to Australia’s economic growth.

“Importantly, the budget update reveals that growth in company tax paid by the mining industry is offsetting weaker-than-expected revenues from other parts of the economy,” said MCA CEO Tania Constable on Monday.

“These taxes help to fund teachers, nurses, police and the essential infrastructure on which Australians rely.

“To build the skills needed for the mining workforce of tomorrow, MYEFO also confirmed that the government will provide A$9.7-million over three years from 2019-20 to establish a Skills Organisation pilot which will trial new ways of working across the national training system to ensure graduating trainees and apprentices have the particular skills needed by employers in the mining industry.”

Constable said that the budget update also provided a timely reminder of the many challenges facing the Australian economy, which must be addressed to underpin future improvements in the standard of living of all Australians.