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Additional crude oil revenue and the budget



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Jfe 4,, AUSTRALIA . TREASURER

N O . l

EMBARGO

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STATEMENT BY THE TREASURER, THE HON. JOHN HOWARD, MP

ADDITIONAL CRUDE OIL REVENUE AND THE BUDGET

The recently announced increase in the price of crude

oil will result in extra revenue as presently estimated . from the crude oil levy of approximately $404 million this financial year. .

It is anticipated that revisions to production estimates

will add a further sum of about $39 million to receipts.

This will, bring total revenue from the crude oil and LPG

levy in 1979/80 to approximately $2,500 million..

Speculation as to what night ba done with the e/ditional

revenue is inevitable. The Government itself has already

given preliminary thought to the subject. .

A basic feature, of the Government's economic policy over the last four years has been firm restraint of expenditures.

It follows from this that the Government has no intention

of allowing the additional revenue to open' the way for

increased Government spending.

The Government believes that the extra revenue from the

crude oil levy does enable it - with complete, economic

responsibility - to contemplate taxation reductions in other areas. ’

However this is not a matter on which hasty decisions will

be taken.

2 .

It would be entirely premature at this stage to canvass

possible areas in which tax' reductions might occur or

the size of any such reductions. .

Over coming weeks further detailed consideration will be

given to this issue before firm conclusions are reached.

• v · .

2 JANUARY 1980 CANBERRA