Treasurer Jim Chalmers credits lower spending for $15.8 billion budget surplus
Treasurer Jim Chalmers is crediting spending restraint as the sole reason for banking a larger-than-expected Federal Budget surplus despite falling tax receipts.
Arriving back in Australia after high-level economic talks in China, Dr Chalmers will on Monday reveal the final set of budget numbers for 2023-24 includes a $15.8 billion surplus.
The headline figure — Labor’s second-consecutive surplus — is $6.4 billion higher than the $9.3 billion surplus forecast in the May budget.
Dr Chalmers said the better-than-expected numbers were “entirely” due to lower spending, with income tax and company tax receipts below what was forecast in May.
The West understands the recent drop in commodity prices did not substantially affect company tax receipts up to June 30.
The figures will be used to combat claims, including from the Opposition, that excessive Government spending is responsible for the stubbornly high inflation that is forcing the Reserve Bank to keep interest rates on hold.
Dr Chalmers said posting back-to-back surpluses was the sort of budget management that would be “unrecognisable” to the former Coalition Government.
“We’re the first government to post back-to-back surpluses in nearly two decades,” he said.
“These surpluses help pay down Liberal debt, help fight inflation and haven’t come at the expense of cost-of-living relief for people under pressure.
“Our bigger than expected surplus in the year just gone is entirely due to lower spending, with the tax take also lower.”
The Treasurer was last week buoyed by news of major stimulus measures to reverse China’s prolonged property market slump, which has caused the iron ore price to tumble.
Camera IconJim Chalmers. Credit: News Corp Australia
Dr Chalmers and Finance Minister Katy Gallagher will release the final budget numbers at a press conference in Canberra, where the pair will face another grilling about Labor’s position on negative gearing.
Prime Minister Anthony Albanese has confirmed Labor won’t take policies to wind back the concessions to the next election but has not ruled out pursuing changes after that.
Dr Chalmers on Friday said it was “not unusual” for treasurers to request advice on contentious policies – comments that were interpreted as confirmation he sought the modelling.
Senior Labor sources rejected that interpretation, leaving it unclear who exactly requested the advice.
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