How Australia spent its mining boom windfall

Where did the money go? According to this report from PerCapita:

Our estimate is that the pre-GFC phase of the boom delivered at least $180 billion over and above long-term GDP growth trend. What did we do with this bounty? 

Just over half of the windfall, $105 billion, was used by the Howard and Rudd Governments to shore up the fiscal position of the Commonwealth. We paid off $36 billion of sovereign debt and put $69 billion into long-term savings funds.

This was the responsible course of action. But the remaining $75 billion represents a big missed opportunity. The Howard Government gave at least $25 billion away in tax cuts and concessions, on everything from fuel excise to voluntary superannuation contributions.

It used another $50 billion on inflated spending programs and various cash handouts, from the baby bonus to the First Home Owners’ Grants.

H/t: Australian Policy Online