Budget (2024)

The Budget 2024-25, also called the Commonwealth or Federal Budget, is the Australian Government's main annual financial report. Its headline is the underlying cash balance (UCB), the difference between cash receipts and cash payments. Treasury and Finance prepare the papers, signed off by the Treasurer and Finance Minister and tabled by the Treasurer in the House of Representatives.

It is a full census of Commonwealth accounts, not a sample, and excludes state budgets, household finances and monetary policy. Rate decisions belong to the Reserve Bank of Australia, and the Budget is published under the Charter of Budget Honesty Act 1998.

The Budget covers the year from 1 July to 30 June, with estimates for the current year, the budget year and the next three years. It is usually tabled on the second Tuesday in May, Canberra time, by the Treasurer with the Appropriation Bills that authorise spending and a speech. The papers, speech, overview and portfolio details appear together. Budget-night measures apply from 7:30pm Canberra time that night, though timing can vary.

Every figure is re-estimated at each update: the mid-year outlook, the final outcome and the pre-election outlook. The mid-year outlook is due by the end of January, and the final outcome within three months after June. Revisions are split into policy decisions versus parameter and other variations.

Receipts track jobs, profits and spending, while payments reflect welfare, health, education and defence.

• Personal and company tax: the two largest tax heads. Personal tax tracks jobs and is lowered by cost-of-living cuts for every taxpayer from 1 July 2024. Company tax tracks profits including iron ore and coal prices.
• Social security and welfare, 36.3%: the largest spending function, covering disability, aged care, income support and veterans.
• Health, 15.3%: public health spending.
• Education, 7.2%: schools, universities, vocational training and indexed student loans.
• Defence, 6.5%: spending under the National Defence Strategy and Integrated Investment Program.
• All other functions, 35.7%: general public services, public order and safety, energy, housing and research support.

The final outcome for 2023-24 shows Budget-day forecasts are revised at each update. On 14 May 2024 the Government forecast a $9.3 billion surplus, 0.3% of GDP, after a $22.1 billion surplus in 2022-23. The outcome was a $15.8 billion surplus, 0.6% of GDP, $6.4 billion above forecast.

Receipts fell $3.7 billion to $688.6 billion, while payments fell $5.2 billion to $685.9 billion. That made the first back-to-back surpluses in nearly two decades, alongside a forecast $28.3 billion deficit for 2024-25.

1. Net cash flows from operating activities: Operating receipts minus operating payments, counted when cash is received or paid. For example, $700m minus $680m leaves +$20m.
2. Net cash flows from investments in non-financial assets: Sales of non-financial assets minus purchases. For example, $3m minus $13m leaves -$10m.
3. GFS cash surplus or deficit: Add the two results above. For example, $20m minus $10m leaves +$10m.
4. Underlying cash balance (UCB): GFS balance minus principal payments of lease liabilities under AASB 16. For example, $10m minus $2m leaves +$8m, a surplus.
5. Headline cash balance: UCB plus net policy-purpose investment in financial assets. For example, $8m minus $3m leaves +$5m.
6. Net operating balance: Revenue minus expenses on an accrual basis, excluding new capital spending.
7. Fiscal balance: Net operating balance plus net new capital investment, shown as a share of GDP.
8. Net interest payments: Interest paid minus interest received.
9. Presentation: No survey weights and no seasonal adjustment apply, with figures in dollars and as a share of GDP.