This week's mid-year budget update is expected to be a reality check for Australia
Treasurer Jim Chalmers will be under pressure to explain his approach to the nation's finances when he delivers the Mid-Year Economic and Fiscal Outlook.
Treasurer Jim Chalmers has had the good fortune of delivering two back-to-back surpluses over his last two budgets. But this week's upcoming mid-year update presents a completely different set of economic and political challenges.
Here’s what you need to know about the key economic data releases this week.
Budget update
What: 2024-25 Mid-Year Economic and Fiscal Outlook (MYEFO)
When: Wednesday 18th December 2024
What to expect: Get ready to hear the words “debt” and “deficit” a lot this week. The government said on Sunday evening that MYEFO would reveal the first downwards revision in company tax receipts since 2020, by $8.5 billion over the next four years, on the back of weaker commodity volumes and the Chinese economy. Mining exports will be downgraded by over $100 billion over the years to 2027-28.
Independent economist Chris Richardson has already tipped the cash headline deficit to be $20 billion worse than was forecast back in May.
