Australian Budget Blow Out Seen as Structural Deficit Hits (1)

Australia’s budget deficit is likely to swell beyond forecasts, in a reversal of previous years when massive revenue upgrades from high iron ore prices ended up returning the books to the black, according to Deloitte Access Economics.

Ahead of next month’s mid-year fiscal review, Deloitte estimates the underlying cash deficit in the 12 months through June 2025 will be A$33.5 billion ($22 billion) compared with A$28.3 billion seen six months ago. That would end consecutive surpluses.

“The structural budget position – that is, what the budget balance looks like after correcting for the swings and roundabouts of the economic cycle ...