Last month Gina Rinehart, Australia's richest woman and matriarch of Perth's Hancock mining dynasty delivered an unwelcome shock to her workers in Western Australia: accept a possible 10 per cent pay cut or face the risk of future redundancies.
Rinehart, whose family have accumulated vast wealth from iron ore mining, has seen her fortune dwindle since commodity prices began their inexorable slide last year. The Australian mining mogul has seen her estimated wealth collapse to around $11b from a fortune that was thought to be worth around $30b just three years ago.
This colossal collapse in wealth is symptomatic of the wider economic problem now facing Australia, which for years has been known as the lucky country due to its preponderance in natural resources such as iron ore, coal and gold.
During the boom years of the so-called commodities "super cycle" when China couldn't buy enough of everything that Australia dug out of the ground, the country's economy resembled oil-rich Saudi Arabia.
While the rest of the world suffered from the aftermath of the global financial crisis, Australia's economy - closely tied to China - appeared impervious, with full employment and a healthy trade surplus.
However, a collapse in iron ore and coal prices coupled with the impact of large international mining companies slashing investment has exposed Australia's true vulnerability. Just like Saudi Arabia, which is now burning its foreign reserves to compensate for falling oil prices, Australia faces a collapse in export revenue.
Recently revised figures for April show that the country's trade deficit with the rest of the world ballooned to a record A$4.14b. That gap between the value of exports and imports is expected to increase as the value of Australia's most important resources reaches new multi-year lows. Iron ore is now trading at around $50 per tonne, compared with a peak of around $180 per tonne achieved in 2011. Thermal coal has also suffered heavy losses, now trading at around $60 per tonne compared with around $150 per tonne four years ago.
For an economy which in 2012 depended on resources for 65 per cent of its total trade in goods and services these dramatic falls in prices are almost impossible to absorb without inflicting wider damage. The drop in foreign currency earnings has seen Australia forced to borrow more in order to maintain government spending.
Could a prolonged period of depressed commodity prices even turn Australia into Asia's version of Greece, with China being its banker of last resort instead of the European Union?
The respected Australian economist Stephen Koukoulas recently wrote of the dangers that escalating levels of foreign debt could present for future generations. Could a prolonged period of depressed commodity prices even turn Australia into Asia's version of Greece, with China being its banker of last resort instead of the European Union?
Koukoulas points out that by the end of the first quarter this year, Australia's net foreign debt had climbed to a record $955b, equal to almost 60 per cent of gross domestic product. Although this is far behind the likes of Greece, which boasts an unenviable ratio of over 175 per cent, it is nevertheless unsustainable, especially if it is allowed to widen further.
The government in Canberra and the Reserve Bank of Australia had bet that depreciation in the value of the country's currency would help to offset the decline in its overbearing mining industry. However, that hasn't happened to the extent they would have wished. Although recent surveys of business confidence have been encouraging, outside mining the economy appears hopelessly weighted to the only other area of significant growth, real estate.
The problem is that Australia, after decades of effort to diversify, is looking ever more like a petrodollar economy of the Middle East, but without the vast horde of foreign currency reserves to fall back on when commodity prices fall.
Instead, Australians must borrow to maintain the standards of living that the country has become accustomed to, which even some Greeks will admit is unsustainable.