Budget deficit comes in $6b smaller than forecast
The 2025-26 deficit hit $22.3b, $6b better than predicted, thanks to extra tax revenue from income and superannuation.
Australia's budget deficit fell to $22.3 billion for the 2025-26 financial year, beating the May forecast by $6 billion. The Commonwealth collected $4.6 billion more in tax revenue than expected, largely from higher personal income tax on business and investment income and stronger superannuation fund tax receipts.
The deficit now represents 0.8 per cent of the economy instead of the predicted 1 per cent. Government debt came in at $971.4 billion, also $10.6 billion lower than forecast.
Why it mattersA smaller deficit eases pressure on interest rates and inflation, potentially helping households and businesses manage costs.
AustraliaAustralia's fiscal position strengthens, which can reduce pressure on interest rates and supports the economy's ability to invest in services and infrastructure.
✓ Claims checked against the source and corrected before publish. checked 4 h ago
Open this story in InSnip →
