Australia's budget deficit for 2025-26 came in at AU$22.3 billion, or 0.8% of gross domestic product, which is AU$6 billion better than the AU$28.3 billion estimated in the 2026-27 Budget, according to a Monday statement by Treasurer Jim Chalmers.
Tax receipts were AU$4.6 billion above the budget forecast, driven by higher-than-expected collections from stronger superannuation fund and investment income, while payments were AU$1.4 billion lower than estimated, the statement added.
Gross debt as a share of the economy was 33.2% in 2025-26, down from 38.3% in 2021-22, with new public final demand growing 2.2% in 2025-26 as public demand growth moderated, the statement added.
Chalmers said that while the government has delivered a "substantial budget improvement", structural pressures are intensifying rather than easing, and it is taking decisive action to address some of the biggest spending pressures on the budget.
