Australia’s budget black hole will be ‘much less than originally feared’

Australia has wiped $23.6 billion off its budget black hole, due to better than expected economic recovery over summer.

Partner at Deloitte Access Economics, Chris Richardson, says it shows we “did the right thing in pushing back against the virus”.

“Even though we had all these expensive emergency measures they became less expensive. As things began to go right on the health front, they went right for the economic front, and now it’s showing up as going right on the budget front.”

Mr Richardson says the budget outlook is promising.

“To be clear, we will still have a budget quite deeply in the red this year, it’s just looking like it will be much less than originally feared,” he said.

“If we can get the economy back, believe it or not, on our estimates, the budget will go back very close to being balanced.”

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