Australia Likely to See $20 Billion Budget Surplus, Despite Deficit: Mid-Year Outlook

The government says it has banked 92 percent of revenue improvements since the May budget.

An Australian 100 dollar note is shown on Oct. 6, 2009. Greg Wood/AFP via Getty Images

Despite the Mid-Year Economic and Fiscal Outlook (MYEFO) reporting a $1.1 billion deficit, a strong labour market and rising commodity prices mean the eventual result will likely be a second surplus for the Albanese Labor government.

Commonwealth Bank expects the eventual result will be close to a $20 billion surplus, almost matching the $22.1 billion surplus banks, almost matching the $22.1 billion recorded for the previous financial year.