Australia rolls out new tax cuts, to cost A$17.1 billion over 5 years

Australian Treasurer Jim Chalmers presents 2025/26 budget and the Treasury's key economic forecasts before the Parliament on Tuesday.

Key highlights per Reuters

"Australia rolls out new tax cuts, to cost A$17.1 billion over 5 years."

"2024/25 budget deficit seen at A$27.6 bln, 2025/26 deficit at A$42.1 bln."

"2026/27 budget deficit seen at A$35.7 bln, 2027/28 deficit of at A$37.2 bln."

"Australia sees net debt rising to 23.1% of GDP in 2028/29."

"CPI inflation seen at 2.5% in 2024/25, 3.0% in 2025/26 and 2.5% through 2027/28."

"Unemployment rate at 4.25% in 2024/25 and staying there through 2027/28."

"GDP growth seen at 1.5% in 2024/25, 2.25% in 2025/26, 2.5% in 2026/27."

Market reaction

AUD/USD showed no immediate reaction to the budget announcement and was last seen trading flat on the day at 0.6285.