Australia Posts $15.8B Surplus, Exceeding Expectations; Net Debt Down to 18% of GDP

Sep 29, 2024, 09:57 PM

Australia has posted a budget surplus of $15.8 billion for the most recent financial year, significantly exceeding the expected $9.8 billion surplus. This marks the second consecutive surplus and the first back-to-back surpluses in over 15 years, reducing net federal debt to around 18% of GDP, about where it was pre-COVID. The surplus is attributed to lower government spending and higher commodity prices, although critics note that government decisions actually worsened the surplus by $19.3 billion, while external factors improved it by $38.2 billion. Treasurer Jim Chalmers announced the surplus, with some opposition figures, including Shadow Finance Minister Jane Hume, crediting the hard work of Australians and 'dumb luck' for the positive outcome. Hume also criticized the government for failing to address the structural deficit and for deteriorating Australia's economic position. Senator Jacqui Lambie argued that the surplus should be used to help struggling Australians 'put bread and milk on the table.'