China tariffs offset by rising Australian iron ore prices due to ‘fear tax’

Boosted iron ore prices due to anxious markets are likely to help federal budget's bottom line, Deloitte says

Australia's losses from trade tensions with China are being offset by rising iron ore prices, according to new analysis, which also predicts the Morrison government will announce a smaller budget deficit than originally forecast.

Deloitte Access Economics said Chinese government moves against wine, beef, barley, lobsters and thermal coal have cost Australia money but we've more than made that up in overall terms thanks to iron ore - and the taxman will be a considerable beneficiary of that".