The federal budget is on track to smash its earlier surplus forecasts as the government rakes in much more revenue.
Subscribe now for unlimited access.
or signup to continue reading
The underlying cash balance for the 12 months to May was $19 billion, well above the $4.6 billion surplus flagged for the 2022/23 financial year in the last federal budget.
Official Department of Finance monthly figures released on Friday showed surging company and personal taxes, driven higher by strong commodity prices and the robust labour market.
Rich Insight economist Chris Richardson said the figures were a reminder of how "how lucky the Lucky Country has been".
"Conditions have thrown money at the taxman," he said.
"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."
He said the May numbers did not shift the overall budget story of a short-term sugar hit followed by longer-term structural problems, but did suggest official forecasters had dramatically underestimated the temporary boom.
Treasurer Jim Chalmers raised the possibility of a much bigger surplus than the slender $4.2 billion forecast in the May budget seven weeks ago.
Provided it eventuates, the surplus will be the first in 15 years.
Australian Associated Press
