Australian Govt forecasts 2022/23 budget surplus at A$4.2 billion

Australian Treasurer Jim Chalmers presents the country’s 2023/24 (July-June) budget released on Tuesday, with key highlights noted below.

Govt forecasts 2023/24 budget deficit at A$13.9 bln, 0.5% of GDP, 2024/25 deficit A$35.1 bln, 1.3% of GDP.

Govt forecasts net debt at 22.3% of GDP in 2023/24, 23.5% in 2024/25, 24.0% in 2025/26.

Consumer price inflation forecast at 3.25% in 2023/24, 2.75% in 2024/25, 2.5% in 2025/26.

Energy relief plan expected to reduce CPI inflation by 0.75ppt by Q2 2024.

GDP growth forecast at 1.5% in 2023/24, 2.25% in 2024/25, 2.75% in 2025/26.

Unemployment rate forecast at 4.25% in 2023/24, 4.5% in 2024/25, 4.5% in 2025/26.

Raises population growth forecast to 2.0% for 2022/23, 1.7% for 2023/24.

Raises iron ore price assumption to $60 tonne, metallurgical coal $140, thermal coal $70, LNG $10.

Govt forecasts 2022/23 budget surplus at A$4.2 bln, 0.2% of GDP.