Australia has closed the 2025–26 financial year with an underlying cash deficit of $22.3 billion, or about 0.8 per cent of GDP, $6 billion smaller than the $28.3 billion deficit forecast in the May Budget. The deficit nevertheless widened from $10 billion in 2024–25, while the May Budget forecasts a further $31.5 billion deficit in 2026–27.
Treasurer Jim Chalmers said the improvement since May consisted of $4.6 billion more in receipts and $1.4 billion less in payments. Gross debt at the end of the financial year was also $10.6 billion below the May expectation. Final Budget & Outlook
Importantly, Chalmers said the revenue surprise was not the familiar commodity-price windfall. Mining profits were below forecast, with the additional receipts overwhelmingly attributed to stronger superannuation fund and investor income. Finance Minister Katy Gallagher said lower-than-expected spending on aged care, the Pharmaceutical Benefits Scheme, childcare and some national partnership payments also assisted the result, although expenditure was higher in some other areas.