Australian Government Struggles With Slipping Tax Revenues

The place was one of the world's few economic bright spots

PRIME Minister Julia Gillard has declared that decisions about the nation's finances are so "grave" and "urgent" every option is on the table at the Budget—even those previously off the table.

Confirming newspaper reports today, Ms Gillard told a forum in Canberra the government's revenue had slid $12 billion since the last budget update in October.

But the PM went further, saying that "everyone" had to cover their share of the burden although she insisted would not "cut to the bone".

"As a Labor Prime Minister, I find these decisions both urgent and grave," Ms Gillard said.

"This revenue discussion is not historical, it's very contemporary.  There is new news here compared to six months ago—and new news here compared even to three months ago.