A surge in company tax receipts is driving an astonishing improvement in the Australian government’s budget bottom line, with official data showing the fiscal position is some $9 billion better than expected just five months ago.
Figures released last week showed the underlying cash balance sat at a deficit of $10.5 billion. The budget, delivered in May by then-treasurer Scott Morrison, projected a deficit of $19.5 billion at this point.
Although the figures need to be treated with caution as the position could change dramatically through major capital outlays and variations in expenses or revenue from month to month, the improvement in company tax receipts appears sustained and clears the way for a significant update on the nation’s fiscal position come the mid-year fiscal update in December.
With an election due in May next year there is also scope for the major parties to propose significant policy overhauls with changes to their spending plans.
The May budget projected a deficit of $14.6 billion for this full financial year, with a small surplus to follow in 2020. Business Insider
