Written by 10:36 pm Interesting Reads, News, Political News, Popular Blogs, SLIDER

Australian Federal Budget Deficit at only $1.1 Billion and eyeing Budget Surplus by EOY

Australian Federal Budget Deficit at only $1.1 Billion and eyeing Budget Surplus by EOY
Sharing is caring

Figure 1-Australian Federal Budget Deficit | In-Picture Jim Chalmers

The Mid-Year Economic and Fiscal Outlook 2023-24 (MYEFO 2023-24) updated the previously announced Australian Federal Budget Deficit of $13.9 Billion to only $1.1 Billion. Treasurer Jim Chalmers released the Australian Federal Budget for 2023-24 last Wednesday.

Experts have tied the short-term reason behind this surplus to higher-than-expected tax revenue generated over the financial year. However, this 2nd successive surplus generated by the Labor government has also led to expectations of budget re-allocations.

Strong Positives for Industries and Sectarian Investments

While sharing the updated Australian Federal Budget deficit, Treasurer Jim Chalmers mentioned that a consolidated end-of-year surplus is “within striking distance” and that there will be a potential $64.4 billion surplus from tax revenue over the next four years.

The key drivers to this surplus include –

  • High commodity prices lead to better profit realisation for enterprises and subsequent taxation
  • Low unemployment has helped generate positive returns from industrial and sectarian investments while reducing costs for unemployment support
  • Increasing non-mining corporate profits has opened new doors for an otherwise Australian economy heavily reliant on the mining sector

The government’s push towards green energy, clean-tech and other future-ready sectors has paid off for both short and long-term growth prospects.

Despite the surplus, the government will continue their corporate and industrial tax cuts to keep accelerating growth in non-mining sectors and incentivise future tech ventures and products.

Banking on Global Economy Trends

The MYEFO 2023 2024 announcement also included vital insights, including slower GDP growth pegged at 1.75% and real wage growth at 0.25%.

Experts have commented that the 2nd successive Australian Federal Budget surplus has not positively impacted the high inflation rates. Further, it remains a concern yet to be addressed since the global economy expects a financial recession in 2024-25.

However, MYEFO 2023 has forecasted higher GDP growth and real wage growth for 2024-25, backed by continued investments into new industrial sectors for job creation. These forecasts are also expected to help reduce unemployment, which is expected to rise to 4.25% for this financial year.

Key Takeaway for Investors

  • The government will continue with Stage 3 of tax cuts for industrial and corporate investments.
  • Added importance to future-proof industry sectors like renewable energy and clean tech, among others, to negate over-emphasis on the core mining sector.
  • Tax concessions for the real estate industry, especially for property investors.
  • An almost positive Australian Federal Budget Deficit shows financial resilience and stability ahead of a forecasted global economic recession.


The Content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video (Content), is a service of COLITCO LLP and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is not a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Colitco LLP is neither licensed nor qualified to provide investment advice through this platform. Users should make their inquiries about any investments, and Colitco LLP strongly suggests the users seek advice from a financial adviser, stockbroker, or other professional (including taxation and legal advice), as necessary. Colitco, at this moment, disclaims any liabilities to any user for any direct, indirect, implied, punitive, special, incidental, or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Colitco LLP. Some images/music used on this website is copyrighted to their respective owner(s). Colitco LLP does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions, or are believed to be in the public domain. We have used reasonable efforts to accredit the head wherever it was indicated as or found to be necessary.


Visited 21 times, 1 visit(s) today

Sharing is caring
Close Search Window