Oz Govt posts first surplus in 15 years

Australia’s government has reported a Budget surplus of A$22.1 billion ($23.9b) in the last fiscal year, the first time the nation’s books have been balanced in 15 years.

The Government cited low unemployment and high prices for the country’s commodities, including iron ore, coal and gas. The surplus was equivalent to 0.9 per cent of Australia’s GDP.

The positive showing for the year that ended June 30 was larger than the A$4.3b surplus forecast in May. And it was a vast improvement from the A$77.9b deficit forecast ahead of elections in May 2022.

But Treasurer Jim Chalmers said he did not expect another Budget surplus in the current fiscal year, citing China’s economic problems and recent Australian interest rate rises continuing to weigh on growth.

“We’re not currently anticipating a second surplus for the time being,” Chalmers said.

In announcing the surplus, he pointed to

550,000 jobs created since the centre-left Labor Party government was elected last year. Australian Bureau of Statistics data show Australia’s jobless rate was 3.7 per cent in August.

The Government’s corporate tax receipts for the last fiscal year also came in A$12.7b better than forecast in May, which reflects high prices for coal, iron ore and liquified natural gas. The energy prices have been inflated in part by Russia’s invasion of Ukraine.

Australia’s central bank has left the benchmark cash borrowing rate steady at 4.1 per cent at its last three monthly board meetings, which some economists say suggests that the

12th consecutive hike in May would be the last for a while. The Government’s last Budget surplus was A$19.7b, or 1.7 per cent of GDP, in the

2007-08 fiscal year.