Deloitte: Australian federal budget to get back into surplus by next FY

[Mighty AU]

It's been about a decade since Australia's budget was in surplus, but Deloitte Access Economics is forecasting we will get there next financial year.

That could mean both political parties spend more money to woo voters ahead of next year's federal election.

In its latest Budget Monitor, Deloitte forecasts an underlying cash deficit of $4.9 billion in 2018-19 — the smallest since the global financial crisis — followed by a small surplus of $4.2 billion in 2019-20.

"After a decade of deficits, we're finally back within a whisker of a surplus," director Chris Richardson said.

However, the shift back into the black remains elusive, he said.

"It has taken the current virtuous cycle of surging revenues and some modest spending restraint to get us this close," Mr Richardson said.

"But we really are close."

Higher tax take as revenues surge

Deloitte's report said the economy would be about $27 billion bigger this year than official Treasury projections had it.
And 2018-19 revenues are forecast to be $9.2 billion above where Treasury estimated them. 

"Revenues are turbocharged," Mr Richardson said.

Nominal GDP is growing at 5 per cent, but revenue growth is at 10 per cent, he said, "pumped up by surge in profits".

Company tax will raise almost $100 billion this year, which is $8.4 billion above the Treasury budget forecast. 

The superannuation tax take is up by $1 billion on Treasury forecasts — with both the company and super tax takes benefiting from firms and funds having run out of tax losses to offset against current tax payments.

Total spending is $360 million less than expected at budget time in May this year, and $140 million more next year.

But new policy promises were being paid for via economic gains.

"It is the economy that's gotten us back to surplus rather than difficult decisions or carefully crafted compromises out of Canberra," Mr Richardson said.

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Read more at https://www.abc.net.au/news/2018-11-26/budget-to-get-back-to-surplus-next-fianncial-year-deloitte/10549444

[Patrick]

cool can we invest in better education and more infrastructure now?

[Goberfish]

Rev up those mortgages!

[🅱️🅰️LLS. ➿]

Yeah cause the coalition tax cuts never passed lmao

[Sableye]

clearly the time for a tax cut then.