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The Australian Federal budget is estimated to be in surplus – but just for one year.
Although the surplus will be shortlived – this financial year only - it was one of the many upgrades contained within the budget papers.
The sum of budget deficits have been halved relative to October 2022, largely as a result of economic parameter changes which added $A146 billion to underlying cash balances from 2022-23 to 2026-27.
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The cost of living was key to new policies announced, including an increase to JobSeeker of $A40 per fortnight.
Overall, the budget showed an increase in payments, but not enough to actually increase payments as a share of GDP.
Adelaide Timbrell is a Senior Economist at ANZ
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