MYEFO maintains Budget surplus delusions

Monday 18 December 2017

Yesterday afternoon, the Mid-Year Economic and Fiscal Outlook (MYEFO) was released by Treasurer Scott Morrison which, as expected, reaffirmed its commitment to returning to surplus by 2020-21:

As shown above, the underlying cash balance was $5.8 billion better-off in MYEFO versus the Budget, and this was caused primarily by a large boost in company taxes and super fund fees relating to the commodity price and terms-of-trade mini-boom:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.