Australia Posts First Budget Surplus in 15 Years as Jobs and Commodities Boost Revenue

Australia's budget surplus for 2022-23 revised up to $22.1bn, first surplus in 15 years
Surplus driven by strong jobs market and higher commodity prices boosting tax revenue
Gross debt $87.2bn lower than pre-budget estimate, saving $12bn in interest
Surplus may raise hopes for a second year in surplus despite projected deficit in 2023-24
Government says surplus lays foundation for social spending and long-term economic growth

theguardian.com

Relevant topic timeline:

8/21/2023

Australia's $1.5 trln pension sector invests in debt again

### Summary Australia's pension sector increased its investments in local and foreign debt by over A$20 billion ($16 billion) in the past year, as higher yields boosted the appeal of fixed income assets. ### Facts - 📈 Australia's pension sector grew its investments in local and foreign debt by more than A$20 billion over the past year. - 🏦 AustralianSuper, the country's largest fund, doubled its debt assets to A$40 billion and increased its fixed income allocation to its highest level in at least 8 years. - 📉 Australian investors traditionally preferred stocks over bonds due to dividend-friendly tax laws and low global yields. - 💰 The sector has historically been underweight in fixed income compared to global standards. - 📊 Even funds reluctant to permanently change their allocations to debt are trading bonds, indicating a tentative embrace of fixed income. - 💼 The rise in benchmark sovereign yields since late 2020 is luring funds back to public markets. - 💸 The pension sector is gradually shifting towards a more balanced allocation between equities and fixed income.

8/21/2023

Australia's $1.5 trln pension sector invests in debt again

Australia's pension sector has increased its investments in local and foreign debt by over A$20 billion in the past year, as higher yields make fixed income assets more attractive. This shift marks a departure from the country's traditional preference for equities and reflects a broader trend of pension funds globally increasing their allocations to fixed income securities.

8/24/2023

Australia economy to slow, govt spending to rise as population ages-report

Australia's population aging and slower economic growth over the next four decades will put pressure on the budget and increase national debt, according to a government report, with taxation reforms notably absent from the suggested solutions.

9/6/2023

Australian economy grows modestly in Q2, eases recession fears

Australia's economy grew more than expected in the second quarter, driven by exports and investment, while household consumption remained weak due to high interest rates; however, productivity and rising labor costs remain concerns for the Reserve Bank of Australia.

9/6/2023

Australia’s economy is smaller than a year ago on a per capita basis – this happened during the GFC and 1990s recession

Australia's economy is experiencing a per capita recession, with a drop in GDP per capita for the second consecutive quarter, driven by weak household spending and reliance on government spending and population growth.

Topics

Posted 9/21/2023, 3:00:00 PM

Australia Posts First Budget Surplus in 15 Years as Jobs and Commodities Boost Revenue

Australia's budget surplus for 2022-23 revised up to $22.1bn, first surplus in 15 years
Surplus driven by strong jobs market and higher commodity prices boosting tax revenue
Gross debt $87.2bn lower than pre-budget estimate, saving $12bn in interest
Surplus may raise hopes for a second year in surplus despite projected deficit in 2023-24
Government says surplus lays foundation for social spending and long-term economic growth

theguardian.com

Relevant topic timeline:

8/21/2023

Australia's $1.5 trln pension sector invests in debt again

8/21/2023

Australia's $1.5 trln pension sector invests in debt again

8/24/2023

Australia economy to slow, govt spending to rise as population ages-report

9/6/2023

Australian economy grows modestly in Q2, eases recession fears

9/6/2023

Australia’s economy is smaller than a year ago on a per capita basis – this happened during the GFC and 1990s recession