Australia Likely to See $20 Billion Budget Surplus, Despite Deficit: Mid-Year Outlook

Despite the Mid-Year Economic and Fiscal Outlook (MYEFO) reporting a $1.1 billion deficit, a strong labour market and rising commodity prices mean the eventual result will likely be a second surplus for the Albanese Labor government. Commonwealth Bank expects the eventual result will be close to a $20 billion surplus, almost matching the $22.1 billion surplus banks, almost matching the $22.1 billion recorded for the previous financial year. Compared with the May 2023 budget, there has been a $12.8 billion improvement to the balance sheet for the current financial year. Expectations are that there will be a total of $39.5 billion more over the four years to 2026-27. The government says it has banked 92 percent of revenue improvements since the budget....