Australia’s Labor Government Forecasts Lower Revenue Increase in Federal Budget for the Year Ended June 30

Australia’s Labor government is forecasting a smaller revenue increase in its federal budget for the year ended June 30. The Treasurer, Jim Chalmers, has cited global economic weakness and a slowing domestic economy as key factors contributing to this decline. Despite announcing a budget surplus on May 14, the government expects tax receipt upgrades to be over A$100 billion below the average of A$129 billion seen in the past three budgets.

Chalmers acknowledged that massive revenue upgrades from past budgets are not expected to be sustained due to challenges facing the economy, including decreased global demand, slower domestic growth, a weakening job market, and lower commodity prices. He also highlighted concerns about events in the Middle East affecting the global economy and shaping decisions in the upcoming budget. With uncertainty prevailing in the economic landscape, Australia remains cautious about revenue expectations and growth prospects in the near term.