The Albanese Government has majorly turned around Australia's economic position since 2022. Labor delivered back-to-back budget surpluses of $22.1 billion (2022-23) and $15.8 billion (2023-24), the first consecutive surpluses in nearly two decades and the largest on record. The 2024-25 final budget outcome delivered a deficit of just $10 billion, $18 billion better than forecast. Standard & Poor's reaffirmed Australia's AAA credit rating on 30 September 2025, noting that "Australia's fiscal performance is sound" and "sound fiscal metrics support our 'AAA' long-term sovereign credit rating."

Over three years to 2024-25, the fiscal position improved by $209 billion compared to what was inherited from the previous government. Gross debt in 2024-25 came in $188 billion lower than forecast, avoiding over $60 billion in interest costs over the 11 years to 2032-33. Australia now ranks third strongest for budget balance among G20 countries in 2024, up from 14th in 2021 under the Coalition.

Real wages have now grown for eight consecutive quarters as of November 2025, the longest run in almost a decade. The Wage Price Index grew 3.4% through the year to September 2025, with real wages growing 0.2% annually. Minimum wage earners now take home more than $175 per week extra than when Labor took office. Since coming to government, average annualised nominal wages have grown at 3.7%, much higher than the 2.2% under the previous government.

The government has created 1.2 million jobs since 2022, the strongest employment growth of any major advanced economy, with around four out of every five jobs in the private sector. Unemployment sits at 4.3% as of November 2025, maintaining one of the lowest rates in 50 years. The participation rate reached an equal record high of 67.1% in December 2024.

Inflation has been brought back under control, falling to 2.4% in the December 2024 quarter, firmly within the RBA's target band of 2-3%. This is down from the 6.1% inherited from the previous government. Underlying inflation fell to 3.2%, its lowest level in three years. Australia's inflation rate is now lower than most major advanced economies including the United States, United Kingdom and Germany.

The Future Made in Australia plan represents a $22.7 billion investment over ten years to position Australia as a renewable energy superpower. Legislation passed Parliament in November 2024, with funding including $6.7 billion for renewable hydrogen production tax incentives, $7 billion for critical minerals production tax incentives, $1.5 billion for solar panel and battery manufacturing, and $1.7 billion for the Innovation Fund. The government has already catalysed private sector investments that could scale up to more than $100 billion.

The National Reconstruction Fund established a $15 billion independent investment corporation, operational since November 2023, to rebuild Australia's manufacturing capability across seven priority sectors. In November 2024, the fund announced its first investment of $40 million in Queensland-based Russell Mineral Equipment as part of a broader $100 million co-investment.

Labor released the National AI Plan on 2 December 2025, backed by $29.9 million to establish an AI Safety Institute in early 2026. The plan aims to accelerate AI development and adoption across Australia with three core goals: capturing opportunities through infrastructure investment and supporting local capability, spreading benefits through improved public services and AI adoption across the economy, and keeping Australians safe through the AI Safety Institute and robust regulatory frameworks.

The Economic Reform Roundtable held from 19-21 August 2025 brought together 23 core participants from business, unions, civil society, government and economic institutions. Three issues papers were released on 7 August 2025 covering economic resilience, productivity, and budget sustainability. The consultation process received almost 900 submissions, with 41 ministerial roundtables held across different sectors. The Productivity Commission released five interim reports identifying 15 priority reform areas, with final reports due to government in December 2025.

On corporate tax, the government closed multinational tax loopholes by implementing a global minimum tax effective from 1 January 2024, ensuring large multinational enterprises pay a minimum 15% tax rate. This applies to companies with annual global revenue of €750 million or more. Corporate tax receipts reached almost $100 billion in 2022-23, a 17% increase from the previous year, directly supporting essential services including healthcare, infrastructure and education.

Summary:

• $22.1 billion surplus (2022-23) and $15.8 billion surplus (2023-24), largest back-to-back surpluses on record

• 2024-25 deficit of $10 billion, $18 billion better than forecast

• $209 billion cumulative fiscal improvement over three years

• Gross debt $188 billion lower, avoiding $60 billion in interest costs

• AAA credit rating reaffirmed 30 September 2025

• Ranked 3rd in G20 for budget balance in 2024, up from 14th in 2021

• 8 consecutive quarters of real wage growth as of November 2025

• Wages growing 3.4% annually, real wages up 0.2%

• Minimum wage earners earning $175+ per week more

• 1.2 million jobs created since 2022

• Unemployment at 4.3% (November 2025)

• Inflation at 2.4% (December 2024 quarter), down from 6.1% inherited

• $22.7 billion Future Made in Australia investment over 10 years

• $100 billion+ in catalysed private sector investments

• $15 billion National Reconstruction Fund operational

• $29.9 million for AI Safety Institute

• 900 submissions to Economic Reform Roundtable

• 15 priority reform areas identified by Productivity Commission

• Corporate tax receipts of $100 billion in 2022-23