Budget's bottom line improves as household pressures remain

Australia's budget is on track for a small deficit thanks to the country's strong labour market and high commodity prices but households remain under pressure with slow wage growth and no new cost of living support.

The Mid Year Economic and Fiscal Outlook (MYEFO) for 2023 to 2024 revealed $64.4 billion in tax heading into the government's pocket due to commodity prices, non-mining corporate profits and strong employment growth.

This means a small deficit is forecast for the next financial year of $12.8 billion after the government scored the first surplus in 2022/2023 in 15 years. The surplus was a result of surging tax revenue from iron ore, coal and gas.

The deficit is an improvement of $1.1 billion from the May forecasts of $13.9 billion.

"This is an improvement of $12.8 billion compared to the budget and it is a $55.4 billion turnaround compared to what we inherited for this year," Treasurer Jim Chalmers said.

https://www.9news.com.au/national/mid-year-budget-2023-2024-deficit-improves-savings-inflation-interest-rates-cost-of-living-jim-chalmers/eb459f93-4ca1-45b5-8fb6-6a074c17453a