Australia rolls out new tax cuts, to cost A$17.1 billion over 5 years
Australian Treasurer Jim Chalmers presents 2025/26 budget and the Treasury's key economic forecasts before the Parliament on Tuesday.
Key highlights per Reuters
"Australia rolls out new tax cuts, to cost A$17.1 billion over 5 years."
"2024/25 budget deficit seen at A$27.6 bln, 2025/26 deficit at A$42.1 bln."
"2026/27 budget deficit seen at A$35.7 bln, 2027/28 deficit of at A$37.2 bln."
"Australia sees net debt rising to 23.1% of GDP in 2028/29."
"CPI inflation seen at 2.5% in 2024/25, 3.0% in 2025/26 and 2.5% through 2027/28."
"Unemployment rate at 4.25% in 2024/25 and staying there through 2027/28."
"GDP growth seen at 1.5% in 2024/25, 2.25% in 2025/26, 2.5% in 2026/27."
Market reaction
AUD/USD showed no immediate reaction to the budget announcement and was last seen trading flat on the day at 0.6285.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
