The Australian government has reported a significantly improved budget outcome for the 2024–25 financial year, with the final deficit coming in over $11 billion lower than forecast.

Treasurer Jim Chalmers and Finance Minister Katy Gallagher released the results on Monday, confirming a final underlying cash deficit of AUD 18 billion (USD 11.8 billion) — nearly AUD 10 billion less than earlier projections. This equates to 0.4% of GDP, one of the strongest fiscal outcomes among G20 nations.

Earlier forecasts had painted a much gloomier picture. The 2025 Pre-election Economic and Fiscal Outlook (PEFO) projected a AUD 27.9 billion deficit, while the 2022 PEFO anticipated a much larger AUD 47.1 billion shortfall for the same year.

In a joint statement, Chalmers and Gallagher highlighted the government’s fiscal turnaround, noting that final outcomes since Labor came to power in 2022 have been AUD 209 billion better than expected. “In dollar terms, we’ve made more progress on the budget in three years than any government in history. It’s a reminder that we have one of the strongest budgets in the G20,” they said.

The improved budget position was attributed largely to a strong labor market, with more Australians employed and wages trending upward.

Australia’s gross debt stood at AUD 928.6 billion, or 33.5% of GDP, at the end of June 2025. This figure is substantially below the AUD 1.12 trillion forecast in 2022, signaling a more sustainable debt trajectory.

Separately, a CSIRO report released Monday found that a national biobank platform could deliver AUD 39 million (USD 25.6 million) in annual benefits by enhancing coordination and efficiency in biomedical research across Australia.

The twin developments underscore Australia’s stronger-than-expected economic performance, with both fiscal resilience and science-led innovation shaping its future outlook.