Australia posts budget surplus for second straight year

Australia has achieved a second consecutive budget surplus, standing at A$15.8 billion ($10.91 billion) for the year to June 2024, the centre-left government said on Sunday, helped by lower spending.

Squeezed by the cost of living, Australians have prioritised spending on essential services, such as healthcare, as they grapple with stubborn inflation and high mortgage rates.

The surplus was a "key part of our plan to take pressure off inflation while providing relief to families, who we know are under pressure", Finance Minister Katy Gallagher said in a statement.

Figures from the Final Budget Outcome 2023/24 showed a surplus of about 0.6% of gross domestic product, while 87% of revenue upgrades returned to the budget bottom line as part of spending curbs to fight inflation, the Labor government said.

The upgraded result, exceeding a May forecast of A$9.3 billion, was due to lower spending, it added.

It followed Australia's first budget surplus in 15 years, one of A$22.1 billion for the year to June 2023.

The 2023/24 result proved the government's "responsible economic management," Treasurer Jim Chalmers added.