Australian budget

The Parliamentary Budget Office’s (PBO) 2025–26 National Fiscal Outlook shows that Australia’s combined national fiscal position has worsened compared to 2024, with deficits persisting across most jurisdictions, rising debt levels, and limited fiscal space for new spending.

The Simandou iron ore project is nicknamed the “Pilbara killer” because it threatens Australia’s dominance in the global iron ore market, particularly the Pilbara region of Western Australia.

Last week, I reported an AFR analysis of 16 financial reports from federal agencies, which revealed that 14 had unbudgeted increases in staff expenses totaling $841 million.

According to analysis from the Parliamentary Budget Office (PBO), the federal budget could face a $58 billion revenue decline if average productivity growth remains at 0.5% over the next four years.

Health Minister Mark Butler has stated organised crime had recently taken a “stranglehold” over the illicit tobacco market and that the tobacco black market has “exploded” into the biggest threat to public health in Australia.

BMI—A Fitch Solutions Company—has published an analysis of the federal budget, which forecasts that Australia’s budget balance will fall into deficit in FY2025 (July to June) as “the government increases spending in response to the persistent cost-of-living crisis”.

Luke Yeaman, Chief Economist at CBA, penned a report on the Australian federal budget, which “is projected to return to deficit over the next decade”.

Data released by the Australian Bureau of Statistics (ABS) last week showed that the combined recurrent spending of the federal and state governments rose by 7.7% in 2024-25, to $1.02 trillion.

Australia’s transition to renewable energy will be extremely expensive, raising power bills.

For years, MB has argued that the federal government’s projected budget deficits, expected to last at least a decade, are largely self-inflicted.

Victoria’s financial situation is dire, as projections indicate that the state’s debt will increase from $155.5 billion to $194 billion by FY29.

Credit ratings agency S&P notes that the combined budget deficits of Australia’s state and federal governments total $52 billion, while the net debt now exceeds 60% of the country’s GDP.

Liberal MP Garth Hamilton has called for sweeping changes to the tax system, arguing that it needs to be inclusive and support modern families.

According to The Guardian, Australia’s tobacco excise rate has tripled in the past decade, from 46c to $1.40 per cigarette, accounting for $28 of the average $40 price for a packet of 20 cigarettes.

Modelling undertaken by Tulipwood Economics on behalf of the Council of Small Business Organisations of Australia suggests that reducing the sector’s tax take could significantly boost economic activity.

The Productivity Commission (PC) recently announced a review of the corporate tax system, with the PC expected to release a draft report in late July and its final recommendations in December.

The Australian Bureau of Statistics (ABS) published data last month revealing that Victorians pay the highest state and local taxes in the country. Victorian state and local government taxes were $6,348 per capita in 2023-24, $654 (11.5%) higher than the state and territory average.

According to the Australian Bureau of Statistics (ABS), Victorians pay the highest state and local taxes in the nation.

Coalition transport spokesperson Bridget McKenzie floated on Sunday, working with state governments on a road user charge after arguing that tax breaks for electric vehicle (EV) owners are being subsidised by internal combustion engine (ICE) car drivers.

Electric vehicles (EVs) receive large subsidies in Australia. First, the Fringe Benefits Tax (FBT) exemption for battery EVs and plug-in hybrids (PHEVs) is estimated to cost the federal budget more than $550 million in lost tax revenue each year.

Electric vehicles (EVs) are massively subsidised in Australia. First, more than $550 million of tax revenue is estimated to be lost annually due to the Fringe Benefits Tax (FBT) exemption for battery EVs and plug-in hybrids (PHEVs); however, the FBT exemptions for PHEVs ended on 1 April 2025.

Electric vehicles have been heavily subsidised in Australia. A recent analysis by the Institute of Public Accountants estimated that the federal budget has lost approximately $564 million annually in tax revenue due to the Fringe Benefits Tax (FBT) exemption for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).