AUSTRALIA NEEDS to curb spending and make “difficult budget decisions” because tax revenue will not grow as quickly as it did between 2004 and 2007 during the mining industry’s previous boom, according to the national treasurer, Wayne Swan.

“We shouldn’t expect to see a repeat of the rivers of gold that flowed into the government coffers” when an extra 334 billion Australian dollars (€246 billion) in tax revenue was generated, Mr Swan said. “The revenues will still be there,”he said, adding Australians should not expect a similar surge. A rising dollar and consumer caution after the global financial crisis are hurting parts of the economy, he continued.

The dollar last week rose to US$1.0775, the strongest level since 1983. Its gains, spurred by revenue from shipments of coal and iron ore to China, have hurt Australian tourism, manufacturing and education.

Prime minister Julia Gillard pledged to return the budget to surplus in the fiscal year ending June 30th, 2013. – (Bloomberg)