Labor rules out mining tax despite Ross Garnaut warning of ‘deep wounds’ from energy prices

Australian economist Ross Garnaut has told the Jobs and Skills Summit that ‘we are kidding ourselves’ if Australia focuses on wage rises rather than a resources tax in a time of rising energy prices. Photograph: Lukas Coch/AAP

Increased spending on healthcare and defence could be met through a greater grab from the resource sector, without the need to raise income taxes, economist Ross Garnaut has told the Jobs and Skills Summit.

Garnaut’s comments, made to delegates over dinner on Thursday night, were followed on Friday by the Albanese government hinting that it may expand paid parental leave even as it ruled out tapping extra revenue from the booming mining sector.