Australia Unveils Tax Cuts, Rebates in Pre-Election Budget

Australia’s center-left government unveiled tax cuts and other sweeteners in a pre-election budget that aims to soothe voters’ cost-of-living concerns and help win Prime Minister Anthony Albanese a second term in office.

As a result, the government’s books are expected to record a deficit of A$42.1 billion ($26.5 billion), or 1.5% of GDP, in the year through June 2026 versus a forecast A$40 billion, the budget papers showed. The shortfall in fiscal 2025 is predicted at A$27.6 billion and follows back-to-back surpluses in the Labor administration’s first two years as it sought to restrain inflation.