Act before commodities boom leaves us bust, urges former Treasury boss

Australia's economic future is at risk, and the time to act is now. For too long, we've been content to be a quarry for the world, digging up rocks and shipping them out, while our own economy becomes less sophisticated and more vulnerable to global volatility. Ken Henry, a former Treasury secretary who understands these issues intimately, has delivered a stark warning: we are repeating the mistakes of the past.

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Australia was suffering economically from its failure to properly tax its commodity exports.

Henry's frustration is palpable. He has seen firsthand the consequences of failing to properly tax our natural resources. The architect of the ill-fated Resource Super Profits Tax, he knows Australia could have collected "hundreds of billions of dollars" more during the last mining boom. This wasn't just about a quick buck; it was about reinvesting that wealth into our own industries, ensuring we remained competitive on the global stage. Instead, we are left with a hollowed-out economy and the lingering question: what was it all for?

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the cost of Australia's political mishandling of the early 2000s mining boom had been "enormous"

This isn't just an academic debate. It's about the prosperity of everyday Australians. While foreign governments, multinational corporations, and billionaires may benefit from the status quo, it's our nation that suffers. The current parliamentary inquiry into LNG taxation is a critical moment. We must learn from history and implement a tax system that ensures Australia reaps the rewards of its own natural wealth, rather than simply exporting it raw. The global south understands commodity dependence; it's time Australia did too, and acted decisively to secure its economic future.

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Australia could have collected "hundreds of billions of dollars of extra revenue" if our natural resources had been taxed appropriately in the early stages of the mining boom.