The surplus for the financial year that ends Friday will be larger than the $4.2 billion forecast in the budget, Treasurer Jim Chalmers will say on Wednesday.
In a speech to be delivered in Darwin, Chalmers says the government had been “deliberately cautious” in its estimate in the budget, “given the history”. This was a reference to former Treasurer Josh Frydenberg’s “back in black” prediction in 2019.
Now, “We’re in a significantly better position than we forecast,” Chalmers says. “We’re expecting the surplus will be bigger than forecast in May.”
The surplus upgrade has enabled the government to recently announce $2 billion for housing, distributed to the states and territories before the end of the financial year.
The good news on the surplus comes as Australian Bureau of Statistics figures on Wednesday will reveal how the fight against inflation is progressing. Next week the Reserve Bank will consider whether to raise interest rates yet again.
The cash rate is currently 4.1%, after the Reserve Bank has hiked rates a dozen times, most recently early this month.
Rating agency S&P Global said this week: “We expect the Reserve Bank of Australia to raise its policy rate further this year.”
Meanwhile, the government and opposition are gearing up for another byelection test, this time in the Liberal Gold Coast seat of Fadden, vacated by Stuart Robert, one of the ministers who oversaw Robodebt.
Opening Labor’s campaign on Tuesday night, Prime Minister Anthony Albanese homed in on Robert.
“Stuart Robert is resigning from parliament having presided over one of the most shocking and cruel failures in the history of Australian politics – Robodebt,” Albanese said.
“Ripping the humanity out of human services. Stripping the social justice from social security. Targeting vulnerable people – and bragging about it.
"That’s the sort of person Peter Dutton thought was good enough for his shadow ministry. And that’s the sort of candidate the LNP thought was good enough for your community. Those are the policies and values they put forward to represent you, time and time again.”
Fadden is on a margin of 10.6%. Although both sides expect the Coalition to hold it on July 15, a swing against the Liberal National Party would be another blow for Dutton, after the disastrous loss of the Liberal seat of Aston in Victoria.
The LNP is putting considerable resources into its Fadden campaign. There were mixed views in Labor about whether to contest the seat, but the local party was anxious to do so, because it overlaps areas important in the state election in 2024.
A swing against Labor would be interpreted, in part, as having implications for the Voice referendum.
Dutton said on Tuesday the byelection was “an opportunity to send the government a message in relation to cost of living, that you’re not happy with the policies that they’ve presided over – and also on the Voice.
"I think there will be a lot of people in Fadden who want to send the Prime Minister a very clear message that they’re not happy with his Canberra Voice proposal, and they’re not happy that he’s continuing to keep details from Australians in relation to how the Voice will operate.”
Labor’s candidate in Fadden, Letitia Del Fabbro, who ran at the 2022 election, is a nurse educator. The LNP candidate is Cameron Caldwell, a Gold Coast councillor.


Saudi Oil Tankers Reverse Course as Houthi Threats Disrupt Red Sea Shipping
US Stock Exchanges Face Earnings Test as Trading Boom Meets Crypto Competition
Gold Prices Slip Near $4,000 as U.S.-Iran Conflict Fuels Inflation Fears
US Dollar Climbs to Weekly High as Middle East Tensions Lift Treasury Yields and Safe-Haven Demand
Trump Set to Unveil New Tariffs on Dozens of Countries as Global 10% Duty Nears Expiration
Japan PM Sanae Takaichi Unveils Growth Plan as BOJ Independence Concerns Lift Bond Yields
US Stock Futures Rise as AI Optimism Lifts Tech, 3M Jumps on Strong Earnings
Houthi Naval Blockade on Saudi Arabia Escalates Iran Conflict, Threatens Global Oil Supply
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven
Trump Announces 100% Tariff on Generic Drug Imports Starting in 2028
Oil Prices Hold Steady as U.S.-Iran Conflict and Houthi Blockade Keep Markets on Edge
US Stock Futures Hold Steady as Tesla, Alphabet Earnings and Iran Conflict Dominate Market Focus
Deutsche Bank Says Fed Balance Sheet Cuts Could Weaken US Dollar Instead of Boosting It
Gold Climbs Above $4,000 as Middle East Tensions and Fed Outlook Drive Safe-Haven Demand
Oil Prices Extend Four-Day Rally as U.S.-Iran Conflict and Red Sea Threats Raise Supply Fears
Germany Producer Prices Rise 1.8% in June, Missing Forecasts 



