Surging company tax and personal income tax have swelled the government’s budget surplus with one month to go in the financial year, Department of Finance figures have revealed.
Surging company and personal tax payments have swollen the federal government’s budget surplus to $19 billion and boosted the prospect of a second straight surplus being delivered next year.
Overall, tax receipts were $8.5 billion higher and government spending was $3 billion lower than anticipated less than two months ago.Westpac Business Bank economist and former Treasury official Pat Bustamante estimated the surplus would be about $20 billion when the final budget outcome was reconciled after June 30.
“Partly that’s as war drove up commodity prices, and partly it’s as inflation took money from the punters and placed it into the pockets of the government and of business.”ramp up pressure from interest groups for Dr Chalmers and Finance Minister Katy Gallagher to spend more of the windfallBut Ms Gallagher said the surplus would “help us to take some of the heat out of the inflation challenge in our economy, rebuild our fiscal buffers and clean up the mess left to us by the Coalition”.
June is often a deficit month for the Commonwealth, as public servants spend allocated money to avoid having their budgets cut in future years.“That sort of shuffling is what the 1996 Commission of Audit tried to stop,” Mr Richardson said.“Were the federal government to be a publicly listed business, it would rightly get a thumping for such window-dressing moves.
“The challenge for Labor is whether it can deliver a path to surplus over the forward estimates. Labor’s only plan is to drive the budget back into deficit.”that the government was closing in on the first surplus in 15 years, as surging tax revenue from iron ore, coal and gas, and record numbers of people in work deliver a financial windfall.
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