Record Back-to-Back Surpluses

Labor delivered a $22.1 billion surplus in 2022-23 and a $15.8 billion surplus in 2023-24, the largest back-to-back surpluses on record. These were the first consecutive surpluses since 2007-08, representing a $172.3 billion improvement compared to what was forecast before the 2022 election.

2024-25 Budget Outcome

The 2024-25 final budget outcome delivered a deficit of just $10 billion, $18 billion better than the $27.9 billion forecast. Over three years, the fiscal position improved by $209 billion compared to what was inherited from the Coalition.

Debt Reduction

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.

AAA Credit Rating Confirmed

Standard & Poor's reaffirmed Australia's AAA credit rating on 30 September 2025, noting that "Australia's fiscal performance is sound" and that "sound fiscal metrics support our 'AAA' long-term sovereign credit rating." Australia now ranks third strongest for budget balance among G20 countries in 2024, up from 14th in 2021 under the Coalition.

Record Job Creation

Labor has created 1.2 million jobs since 2022, the strongest employment growth of any major advanced economy. Around four out of every five jobs (80%) were created in the private sector, demonstrating broad-based economic strength.

Unemployment Remains Low

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, meaning more Australians are in work than ever before.

Quality Job Growth

Full-time jobs accounted for 67% of all jobs growth in 2024, adding 299,000 positions. Women's employment reached record levels at 6.96 million, with 84% of new women's jobs being full-time positions.

Real Wages Growing Again

Real wages have grown for eight consecutive quarters as of November 2025, the longest run in almost a decade. After falling sharply under the Coalition, real wages are now growing strongly under Labor.

Wage Growth Figures

The Wage Price Index grew 3.4% through the year to September 2025, with real wages growing 0.2% annually. Since coming to government, average annualised nominal wages have grown at 3.7%, much higher than the 2.2% under the previous government.

Minimum Wage Increases

Minimum wage earners now take home more than $175 per week extra than when Labor took office, supported by Fair Work Commission decisions and Labor's workplace relations reforms.

Inflation Falling Sharply

Inflation fell 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 in 2022.

Underlying Inflation Down

Underlying (trimmed mean) inflation fell to 3.2%, its lowest level in three years. Six-month annualised underlying inflation reached 2.7%, the first time it's been within the target band since 2021.

Better Than Comparable Countries

Australia's inflation rate is now lower than most major advanced economies including the United States, United Kingdom and Germany.

Future Made in Australia

Labor's 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 the government already catalysing private sector investments that could scale up to more than $100 billion.

National Reconstruction Fund

The $15 billion National Reconstruction Fund, operational since November 2023, is rebuilding 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.

National AI Plan

Released on 2 December 2025, the National AI Plan is backed by $29.9 million to establish an AI Safety Institute in early 2026, positioning Australia to capture opportunities in artificial intelligence while keeping Australians safe.

Closing Multinational Tax Loopholes

Labor implemented 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.

Record Corporate Tax Revenue

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.

Productivity Commission Review

The Economic Reform Roundtable held from 19-21 August 2025 brought together business, unions, civil society and experts. The consultation process received almost 900 submissions, with the Productivity Commission identifying 15 priority reform areas across economic resilience, productivity, and budget sustainability.

The Bottom Line

Labor has delivered responsible economic management that has strengthened Australia's fiscal position, created jobs, lifted wages, and brought inflation under control. With back-to-back budget surpluses, an AAA credit rating, and 1.2 million jobs created, Australia's economy is in a stronger position than when Labor took office in 2022.

Key Figures:

• $22.1 billion surplus (2022-23) and $15.8 billion surplus (2023-24)

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

• $209 billion cumulative fiscal improvement over three years

• AAA credit rating reaffirmed 30 September 2025

• 1.2 million jobs created since 2022

• Unemployment at 4.3% (November 2025)

• 8 consecutive quarters of real wage growth

• Wages growing 3.4% annually

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

• $22.7 billion Future Made in Australia investment

• $15 billion National Reconstruction Fund