The Albanese Government delivered a Final Budget Outcome for 2024-25 that significantly exceeded expectations, demonstrating fiscal discipline and responsible economic management.

The Final Budget Outcome, released on 29 September 2025, revealed an underlying cash deficit of $10.0 billion (0.4% of GDP). This was substantially lower than the forecast deficit of $27.9 billion in the 2025 Pre-Election Economic and Fiscal Outlook, representing an improvement of nearly $18 billion.

The improved fiscal position was driven by two key factors: receipts were $13.0 billion higher than projected, while government payments came in $4.9 billion lower than forecast. The better revenue result was largely attributable to a stronger labour market with more Australians working and earning more.

The day after the Final Budget Outcome was released, on 30 September 2025, Standard & Poor's reaffirmed Australia's AAA credit rating. The international ratings agency noted that "Australia's fiscal performance is sound" and that "sound fiscal metrics support our 'AAA' long-term sovereign credit rating on Australia."

Over the three years to 2024-25, the fiscal position is $209 billion better than what was inherited from the previous government, with gross debt in 2024-25 coming in $188 billion lower and avoiding over $60 billion in interest costs over the 11 years to 2032-33.

• Underlying cash deficit of $10.0 billion (0.4% of GDP)

• $18 billion improvement on Pre-Election forecast of $27.9 billion

• Receipts $13.0 billion higher than forecast

• Payments $4.9 billion lower than forecast

• AAA credit rating reaffirmed by S&P on 30 September 2025

• $209 billion cumulative improvement over three years

• Gross debt $188 billion lower than inherited forecast

[1] https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/biggest-budget-improvement-single-parliamentary-term

[2] https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/sp-reaffirms-aaa-credit-rating

[3] https://www.westpaciq.com.au/economics/2025/09/federal-budget-final-budget-outcome-2024-2025

[4] https://newshub.medianet.com.au/2025/09/final-budget-outcome-masks-structural-tax-problems/120795/