Tax reform and the natural resource industries

Abstract

Tax reforms passed by Federal Parliament in June 1999 include rationalising indirect taxes, a tax mix change, and a smaller fiscal surplus. The impact or first‐round effects on the natural resource industries indicate large gains. Important second‐round reactions, particularly a real currency appreciation, erode most of, and in some cases more than all of, the first‐round gains. A complete assessment requires the use of general equilibrium models.Resource /Energy Economics and Policy,