Mid-Year Economic and Fiscal Outlook (23-24)

On 13th December 2023, Treasurer Jim Chalmers and Finance Minister Katy Gallagher released the Albanese Government’s mid-year budget update. 

The complete MYEFO budget document can be accessed here.

The mid-year update illustrates:

• The Government has returned 92 per cent of upward revisions to revenue since the May Budget, and 88 per cent of revenue upgrades since coming to office.
• The identification of a further $9.8 billion in savings and reprioritisations, with a total of $49.6 billion since the election. 
• An improvement of $12.8 billion compared to the May Budget, and a $55.4 billion turnaround compared to what was left by our predecessors.

The underlying cash balance is forecast to be a smaller deficit of $1.1 billion in 2023-24. Over the five years to 2026-27, the underlying cash balance improved by a cumulative $211.4 billion relative to PEFO.

Gross debt as a share of GDP is expected to peak lower at 35.4 per cent of GDP in 2027‑28, before declining to 32.1 per cent of GDP by the end of the medium term.

The Albanese Government’s economic strategy is focused on:

• Easing cost-of-relief pressures through the roll-out of the $23 billion cost-of-living plan
• Unlocking greater housing supply. The MYEFO invests approximately $6.5 billion to improve housing supply and affordability
• Investing in Australia’s potential to become a renewable energy superpower. The Government has committed an additional $3 billion in the MYEFO
• Progressing the Employment White Paper Roadmap. 
• Improving competition, corporate transparency and supporting small business
• Strengthening Medicare and securing essential services 
• Reducing emissions and sustaining the environment 
• Strengthening economic resilience and improving trade
• Investing in Australia’s national defence
• Enabling a strong and secure digital economy

For more information, please contact Hawker Britton’s Managing Director Simon Banks on +61 419 638 587.