This expansionary impetus comes after the earlier rise of some 40 per cent over the previous five years. So the world economy presents some considerable cross currents for Australia. The biggest terms of trade boom for 50 years is coinciding with one of the most serious malfunctions in developed country capital markets for a long time.
Thus, we cannot rule out the possibility that the forces behind last year’s tax surge will prove transitory and dissipate more rapidly than CBO has assumed, implying lower receipts and renewed deficits for the years ahead.