Australia Achieves Second Consecutive Budget Surplus

SYDNEY (Reuters) – Australia has achieved a second consecutive budget surplus of A$15.8 billion ($10.91 billion) for the year ending June 2024, as announced by the centre-left government on Sunday. This surplus was facilitated by reduced spending.

With rising cost of living concerns, Australians have been focusing spending on essential services like healthcare amidst persistent inflation and high mortgage rates.

Finance Minister Katy Gallagher emphasized that the surplus is a crucial part of the government’s plan to alleviate inflationary pressure and provide relief to families who are currently facing challenges.

According to the Final Budget Outcome 2023/24, the surplus represents approximately 0.6% of gross domestic product (GDP), with 87% of revenue upgrades contributing back into the budget due to spending constraints to curb inflation, reported the Labor government.

The updated surplus, surpassing the previous May projection of A$9.3 billion, is attributed to spending cuts. This follows Australia's first budget surplus in 15 years, which reached A$22.1 billion for the year ending June 2023.

Treasurer Jim Chalmers stated that the 2023/24 results showcase the government’s “responsible economic management.”

($1=A$1.4489)