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Australia Posts Near $10 Billion Deficit as Final Budget Outcome Beats Forecasts

Stronger jobs, wages, commodities lifted revenue, offset by a $54 billion spending surge.

Overview

  • The 2024–25 shortfall finished just under $10 billion, about $17–18 billion better than the March pre‑election forecast and equal to roughly 0.4% of GDP.
  • Personal income tax reached a record $338.3 billion as employment and wage gains boosted receipts, with superannuation earnings adding about $6 billion.
  • Spending jumped by about $54 billion to a record $727 billion, a 5.5% real increase that outweighed the revenue upswing.
  • Gross government debt stood at $928.6 billion on 30 June 2025, about $11.4 billion lower than previously estimated.
  • The government says it banked most revenue upgrades and identified more than $100 billion in savings, with modest legislated tax cuts starting 1 July next year costing $17.1 billion over three years.