Strong global commodity prices have benefited Australia’s federal budget, which is officially back in black this year for the first time in 15 years.
The Office Department of Finance revealed on Friday in its latest monthly financial statement that the Australian federal government’s underlying cash balance in the 12 months to May was $19 billion (US$12.7 billion), much higher than the originally forecasted $4.2 billion surplus.
The figures also show that the government was running on a surplus of $24 billion in May alone.
Higher-than-expected tax collection numbers are being driven primarily by strong commodity prices, particularly iron ore and coal.
However, the opposition is arguing that the prime minister can’t take credit for the higher royalties and company tax receipts from the resources sector, which significantly improved the budget’s bottom line….