Has Labor delivered a budget surplus?
Yes. 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, which was $18 billion better than the $27.9 billion forecast. This represents a $209 billion cumulative improvement over three years compared to what was inherited from the Coalition.
For context, Labor inherited a forecast deficit of $77.9 billion from the previous government.
Has Labor created jobs?
Yes. Labor has created 1.2 million jobs since 2022, the strongest employment growth of any major advanced economy.
Key job creation figures:
1.2 million total jobs created
80% of jobs (4 out of 5) created in the private sector
67% of 2024 jobs growth was full-time (299,000 positions)
Women's employment at record high of 6.96 million
84% of new women's jobs were full-time positions
Unemployment at 4.3% as of November 2025
Participation rate reached equal record high of 67.1%
What has Labor done about wages?
Labor has delivered eight consecutive quarters of real wage growth as of November 2025, the longest run in almost a decade.
Wage growth under Labor:
Real wages growing for 8 consecutive quarters
Wage Price Index up 3.4% annually (September 2025)
Real wages up 0.2% annually
Average annualised wages growing at 3.7% under Labor vs 2.2% under Coalition
Minimum wage earners taking home $175+ per week more than when Labor took office
Lowest gender pay gap in history
Real wages were falling sharply under the Coalition but are now growing strongly under Labor.
Has Labor reduced inflation?
Yes. Labor has brought inflation down from 6.1% (inherited from Coalition) to 2.4% in the December 2024 quarter, firmly back within the RBA's target band of 2-3%.
Inflation figures:
Headline inflation: 2.4% (December 2024 quarter), down from 6.1% inherited
Underlying inflation: 3.2%, lowest in three years
Six-month annualised underlying inflation: 2.7%, first time in target band since 2021
Australia's inflation now lower than US, UK and Germany
Government cost of living measures reduced inflation by about 0.75 percentage points
Electricity prices fell 25.2% over the year (compared to 1.6% fall without energy rebates)
Has Labor reduced Australia's debt?
Yes. Gross debt in 2024-25 came in $188 billion lower than what was forecast under the previous government.
Debt reduction achievements:
Gross debt $188 billion lower than inherited forecast
Avoided over $60 billion in interest costs over 11 years to 2032-33
$209 billion cumulative fiscal improvement over three years
For every extra dollar in revenue, Labor banked 87 cents vs Coalition's 40 cents
$77.4 billion in savings found since coming to government
Does Australia still have its AAA credit rating?
Yes. Standard & Poor's reaffirmed Australia's AAA credit rating on 30 September 2025.
S&P noted that "Australia's fiscal performance is sound" and that "sound fiscal metrics support our 'AAA' long-term sovereign credit rating on Australia." The ratings agency also praised Australia's "excellent political and institutional settings are conducive to stable policymaking."
Australia now ranks third strongest for budget balance among G20 countries in 2024, up from 14th in 2021 under the Coalition. Australia is one of only nine countries rated AAA by all three major credit rating agencies.
What is Labor's plan for the economy?
Labor's economic plan focuses on productivity, resilience and budget sustainability, backed by major investments in Australia's future industries.
Key economic initiatives:
Future Made in Australia: $22.7 billion over 10 years for renewable energy and manufacturing, catalysing $100+ billion in private investment
National Reconstruction Fund: $15 billion to rebuild manufacturing across seven priority sectors
National AI Plan: $29.9 million for AI Safety Institute, released December 2025
Economic Reform Roundtable: Held August 2025, received 900 submissions, identified 15 priority reform areas
Corporate tax reform: Closed multinational tax loopholes, implementing 15% minimum tax for large multinationals
Productivity Commission review: Final reports due December 2025 on five pillars of productivity
How does Labor's economic record compare to the Coalition?
Labor has significantly outperformed the Coalition across key economic indicators:
Budget:
Labor: Two surpluses ($22.1B and $15.8B), $10B deficit in 2024-25
Coalition: Nine years of deficits, no surpluses delivered despite promises
Wages:
Labor: 8 consecutive quarters of real wage growth, 3.7% average annual growth
Coalition: Real wages falling, 2.2% average annual growth, wages fell 3.5% in final five quarters
Fiscal management:
Labor: Banks 87% of revenue upgrades
Coalition: Only banked 40% of revenue upgrades
Credit rating:
Labor: AAA rating reaffirmed, ranked 3rd in G20
Coalition: Ranked 14th in G20 in 2021
Savings:
Labor: $77.4 billion in savings found
Coalition: Zero expenditure savings in final budget
What industries is Labor investing in?
Labor is making significant investments in future-facing industries through the Future Made in Australia agenda and National Reconstruction Fund.
Priority industries and investments:
Renewable hydrogen: $6.7 billion production tax incentive ($2 per kilogram from 2027-28)
Critical minerals: $7 billion for processing and refining (10% tax incentive)
Solar and batteries: $1.5 billion for manufacturing
Green metals: Focus on aluminium and iron transformation
Low carbon fuels: Part of five priority sectors
Clean energy manufacturing: Innovation Fund support
Artificial intelligence: $29.9 million AI Safety Institute
Manufacturing: $15 billion National Reconstruction Fund across seven sectors
What tax relief has Labor delivered?
Labor delivered tax cuts for every Australian taxpayer from 1 July 2024, with all 13.6 million taxpayers receiving a tax cut.
Tax relief under Labor:
Tax cuts for every taxpayer from 1 July 2024
2.9 million more taxpayers received a tax cut compared to the Coalition's original plan
Person on average income ($73,000) receives $1,504 tax cut
Person earning $40,000 receives $654 tax cut (compared to nothing under Coalition plan)
Person earning $100,000 receives $2,179 tax cut
84% of taxpayers (11.5 million) receive a bigger tax cut than under Coalition's plan
90% of women taxpayers (5.8 million) receive a bigger tax cut
Additionally, Labor closed multinational tax loopholes with a 15% minimum tax for companies with €750 million+ revenue. Corporate tax receipts reached $100 billion in 2022-23, a 17% increase from the previous year.
Summary: Labor's Economic Scorecard
✓ Back-to-back budget surpluses for first time in 20 years
✓ $209 billion cumulative fiscal improvement over three years
✓ AAA credit rating confirmed, ranked 3rd in G20
✓ 1.2 million jobs created
✓ Unemployment at 4.3%
✓ 8 consecutive quarters of real wage growth
✓ Inflation down from 6.1% to 2.4%
✓ $188 billion debt reduction
✓ Tax cuts for all 13.6 million taxpayers
✓ $22.7 billion Future Made in Australia investment