Cyclone Alfred's $1.2B Economic Toll Hits Australian Budget

The federal budget faces a shift to deficit as disaster recovery costs and global trade tensions strain economic growth.

Treasurer Jim Chalmers confirmed Cyclone Alfred caused $1.2 billion in economic damage, impacting GDP and increasing inflationary pressures.
The federal disaster support budget will rise to $13.5 billion, reflecting the cyclone’s recovery costs and broader disaster provisions.
The upcoming federal budget, to be delivered on March 25, will mark a shift from consecutive surpluses to a deficit projected at $26.9 billion.
US tariffs on Australian steel and aluminium imports, introduced by President Donald Trump, are expected to reduce GDP by up to 0.1% by 2030, with broader trade tensions compounding economic risks.
The OECD has downgraded Australia’s 2026 GDP growth forecast from 2.5% to 1.8%, citing escalating global trade barriers and economic uncertainties.