After years of Coalition deficits and unfulfilled promises to get the budget 'back in black', Labor has stepped in and delivered two consecutive budget surpluses - $22.1 billion in 2022-23 followed by $15.8 billion in 2023-24. This marks the first time any government has achieved consecutive surpluses since 2007-08, and they're the largest back-to-back surpluses ever recorded.

The achievement has put Australia among the world's top performers for fiscal management, ranking third strongest for budget balance among G20 countries in 2024, up from 14th in 2021 under the Coalition. As Jim Chalmers notes, "From 14th to a podium finish in less than one term is a powerful demonstration of our responsible economic management."

What makes these results particularly significant is how they were achieved. Rather than raising taxes, the government reduced spending while still delivering vital cost of living relief. This includes tax cuts for every taxpayer, energy bill relief for households, cheaper medicines, more affordable childcare, and increased rent assistance. The improved budget position has also helped reduce Australia's debt, saving billions in future interest payments.

The surpluses represent a stark contrast to the previous government's approach. While the Coalition promised surpluses but delivered deficits, Labor has found significant savings through more responsible spending and better financial management. For every extra dollar in revenue, Labor has put 87 cents back toward improving the budget position, compared to just 40 cents under the Coalition.

[1] https://www.afr.com/policy/economy/tax-surge-puts-shock-third-budget-surplus-within-reach-20250110-p5l3bu

[2] https://alp.org.au/news/labor-delivers-biggest-ever-back-to-back-surpluses/

[3] https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/labor-delivers-biggest-ever-back-back-surpluses#:~:text=Today's%20underlying%20cash%20surplus%20of,to%E2%80%91back%20surpluses%20on%20record.

[4] https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/articles/opinion-piece-consecutive-surpluses-proof-labors-responsible

[5] https://www.theguardian.com/australia-news/2024/sep/29/jim-chalmers-to-confirm-first-back-to-back-federal-budget-surpluses-in-more-than-15-years

[6] https://www.sbs.com.au/news/article/the-government-has-recorded-a-second-budget-surplus-heres-what-the-figures-show/95b5x3oj4