I have never invested in BHP Group Ltd (ASX: BHP) shares or Rio Tinto Limited (ASX: RIO) shares, but it's quite possible that they may have made me and every working Australian $500 richer.
You may have seen that the government just increased the tax offset for most Australian full time workers by just over $500. Sure, you might say it's a cynical attempt to buy votes just before an election. But it might be a clever way to put money back into Australian hands to get them spending.
It's not as though the initiative is unfunded. We are apparently just one year away from reaching a budget surplus. Where has all of this extra money come from? One of the biggest contributors has been the Australian resources sector, led by BHP and Rio Tinto – which is why their share prices are getting closer to their all time highs.
According to stats released today, Australia just achieved a seasonally-adjusted record trade surplus of $4.8 billion in February 2019. Economists were only expecting a surplus of $3.7 billion.
Rising commodity prices could provide even more impetus for Australia's financials.
It is amazing how BHP, Rio Tinto, Fortescue Metals Group Limited (ASX: FMG) and a few others can have such a large impact on whether Australia's budget is in the black or not.
I can't ever see myself investing in BHP, but I am benefiting from it with Treasurer Frydenberg offering to make Australians $500 better off largely because of the contributions of the resources sector.
Foolish takeaway
The mining boom saved Australia during the GFC and a decade later it could be a key reason why Australia may avoid a recession again, or at least have a much softer landing.
