Australia: public finances

What is Australia's budget deficit?

The Australian Government recorded an underlying cash deficit of $22.3 billion (0.8% of GDP) in 2025-26, according to the Final Budget Outcome 2025-26. That was $6.0 billion smaller than the $28.3 billion estimated in the 2026-27 Budget. The 2026-27 Budget forecast a deficit of $31.5 billion (1.0% of GDP) for 2026-27.

The underlying cash balance is the government's main budget measure; it excludes net investments in financial assets. The headline cash deficit, which includes them, was $36.1 billion. The budget papers project the underlying cash balance to return to balance in 2034-35. The financial year runs from July to June.

Official sources: Final Budget Outcome 2025-26 (PDF) · Budget 2026-27, Budget Paper No. 1, Statement 3 (PDF)

How much debt does the Australian Government have?

Australian Government gross debt was $971.4 billion, or 33.2% of GDP, at the end of 2025-26, according to the Final Budget Outcome 2025-26. That was $10.6 billion lower than estimated in the 2026-27 Budget.

Gross debt is the face value of Australian Government Securities on issue. It does not subtract the government's financial assets and covers the federal government only, not the states and territories. Net debt, which deducts selected financial assets and uses market values, was $550.0 billion (18.8% of GDP). The Australian Office of Financial Management issues the government's bonds.

Official sources: Final Budget Outcome 2025-26 (PDF)

How much tax does the Australian Government collect?

Australian Government tax receipts were $704.2 billion in 2025-26, $4.6 billion more than estimated in the 2026-27 Budget, according to the Final Budget Outcome 2025-26. Total receipts, including non-tax revenue, were $764.4 billion.

The Final Budget Outcome attributes the higher tax receipts mainly to personal income tax on business and investment income and to superannuation fund taxes; tax on wages and salaries was broadly in line with the estimate. It also reports that income tax withholding fell from 11.0% of GDP in 2023-24 to 10.8% in 2025-26. Receipts are on a cash basis.

Official sources: Final Budget Outcome 2025-26 (PDF)

How much does the Australian Government spend?

Australian Government payments were $786.6 billion in 2025-26, $1.4 billion lower than estimated in the 2026-27 Budget, according to the Final Budget Outcome 2025-26. With receipts of $764.4 billion, this gave the underlying cash deficit of $22.3 billion.

Payments are cash outlays of the general government sector, including social security, health, the NDIS, defence, interest and payments to the states. The breakdown by function is in Part 2 of the Final Budget Outcome. The 2026-27 Budget papers set out spending forecasts for the coming four years and medium-term projections.

Official sources: Final Budget Outcome 2025-26 (PDF) · Budget 2026-27, Budget Paper No. 1, Statement 3 (PDF)

What is Australia's net debt?

Australian Government net debt was $550.0 billion, or 18.8% of GDP, at the end of 2025-26, $6.0 billion lower than estimated in the 2026-27 Budget, according to the Final Budget Outcome 2025-26.

Net debt is measured using the market value of government securities, minus selected financial assets such as cash, deposits, advances and investments. Because it uses market values, it changes when bond yields move, even without new borrowing. It is lower than gross debt ($971.4 billion), which is the face value of securities on issue. The primary deficit, which excludes interest, was $4.6 billion (0.2% of GDP).

Official sources: Final Budget Outcome 2025-26 (PDF)

What is Australia's debt to GDP ratio?

51.9% of GDP: that is general government gross debt in Australia for 2025, according to the IMF. Its high point since 2005 was 2020, at 56.9% of GDP; its low point was 2007, at 9.6% of GDP. Across East Asia & Pacific the middle value was 45.0% of GDP, and Australia placed 12th highest of 29. Worldwide: 100th of 185.

What is Australia's budget deficit?

The latest figure from the IMF, for 2025, is -2.9% of GDP (a deficit). Since 2005 it has ranged from -8.7% of GDP (2020) to 1.8% of GDP (2006). East Asia & Pacific median: -1.7% of GDP; Australia is 19th highest of 29. World rank, highest first: 99th of 188.

How much does Australia's government take in?

According to the IMF, general government revenue in Australia was 36.7% of GDP in 2025. Since 2005 it has ranged from 31.7% of GDP (2011) to 36.7% of GDP (2024). It is 13th highest of 29 in East Asia & Pacific, where the median is 33.6% of GDP. World rank, highest first: 54th of 187.

What is Australia's government spending?

The IMF puts general government spending in Australia at 39.6% of GDP in 2025. Its high point since 2005 was 2020, at 44.3% of GDP; its low point was 2007, at 34.2% of GDP. East Asia & Pacific median: 32.9% of GDP; Australia is 11th highest of 29. Worldwide: 53rd of 186.

What is tax revenue in Australia?

23.6% of GDP: that is central government tax revenue in Australia for 2022, according to the IMF. Its high point since 2005 was 2005, at 24.7% of GDP; its low point was 2011, at 20.3% of GDP. It is 4th highest of 20 in East Asia & Pacific, where the median is 16.5% of GDP. World rank, highest first: 19th of 117.

How much does Australia spend on its military?

In 2025, military spending in Australia was 1.9% of GDP, according to SIPRI. The peak was 2.1% of GDP in 2016 and the low 1.6% of GDP in 2013. It is 5th highest of 16 in East Asia & Pacific, where the median is 1.4% of GDP. Of 149 countries with 2025 data, 64th highest.