Treasurer Jim Chalmers could hand down a shock surplus when he delivers the Federal Budget next week, but a back-in-black bottom line will do little to ease Australia’s total debt.
Soaring tax revenue on high-value exports such as coal, iron ore and gas could help the Albanese Government deliver a surplus budget for the first time in 15 years.
A budget surplus simply means the government’s income is greater than its expenses.
The Australian Government’s gross debt is currently hovering around $900 billion and is tipped to hit the $1 trillion mark by 2025-26.
When asked about a possible surplus this morning the Treasurer was measured in forecasting attractive headline figures while so many Australians struggle to cover household bills.
“The fact that people are speculating even about a Budget in balance is because of the responsible approach that we have taken to the first two budgets by making sure when we get these big upward revisions to revenue that we let most of that flow through to the bottom line,” Chalmers told reporters.
“And that, more than anything – our responsible approach to the Budget – is why people are speculating about a budget in much better nick.
“Our objective all along is to get the Budget in much better nick so that we can fund the things that our society values: help for the vulnerable, setting the economy up to grow into the future.”
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The government has heralded that next week’s Federal Budget will be firmly focused on easing the costs faced by the nation’s most vulnerable.
The rate of Jobseeker is set to be boosted for recipients over the age of 55, while the government has also signposted that there will a substantial package aimed at tackling rising energy bills.
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Well-off Australians could find themselves disappointed by next week’s budget, with experts tipping that a number of generous tax discounts that benefit high income earners will be wound down.
”The top end of town should be on notice if the recently proposed superannuation changes are anything to go by,” said Mark Molesworth, Tax Partner at BDO in Australia.
“Tax breaks on superannuation earnings and contributions are not the largest tax expenditure but the government’s move could be seen as a harbinger of other measures that similarly target a smaller population or group of entities that are seen to be well off.”
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