Tax reform and the natural resource industries

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 g ains. Important second-round reactions, particularly a real currency apprec iation, 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 .