27 November 2019

To assess Australia’s fiscal sustainability and budget challenges it is important to look at the budget position of not only the Commonwealth but also states and territories. This report examine the revenue, expenditure, net capital investment, net financial worth and the net debt position across all levels of Australian government over the forward estimates period. Providing an update to the national fiscal outlook based on Commonwealth and state government budget updates.

Overview 

  • Relative to last year’s outlook, the national net operating balance has been revised upwards and is forecast to reach a surplus of over $20 billion for 2018–19 (1.1 per cent of gross domestic product (GDP)) — the first time a surplus of this magnitude has been reached since the global financial crisis (GFC).
  • This surplus is projected to grow to $45.2 billion (2.0 per cent of GDP) by the end of the 2019–20 forward estimates period, largely due to restrained growth in expenses across all levels of government.
  • On the revenue side, Commonwealth revenue is expected to remain relatively constant as a share of GDP, but to decline moderately at the state and territory level due largely to falls in own-source revenue.

Download the full report above. 

Supporting information

For further information: 

2019–20 National Fiscal Outlook at a Glance

The 2019–20 National Fiscal Outlook at a Glance, provides a graphical snapshot of the Commonwealth, state and territory budgets in three charts, plus national aggregates.