Overview

• Treasury’s results show the deficit is roughly $17–18 billion lower than the March pre‑election forecast of about $27.6–27.9 billion.
• Officials cite robust jobs and wage gains and firmer commodity prices, including iron ore staying above US$100 a tonne, as key revenue drivers.
• The government says it banked most revenue upgrades — estimated at about 70% — and found more than $100 billion in savings.
• The shortfall equals about 0.4% of GDP, as gross debt is expected to top $1 trillion this financial year after ending 2024–25 near $940 billion.
• It marks Treasurer Jim Chalmers’ first deficit after two surpluses, with multi‑year deficits still projected alongside scheduled tax changes.