Where does Australia’s public deficit come from?
From the surpluses of the 2000s to the Covid shock: Australian public revenue and spending since 1999, modest public pensions, and a comparison with France.
Scope: Australian general government (Commonwealth, states and territories, local government), government finance statistics (IMF framework). Fiscal years July–June, labelled by the year they end: 2025 = 2024-25. · Data as of Oct 30, 2026.
Key takeaways
- In 2024-25, Australian general government spent A$1,092bn (39.3% of GDP) against A$1,022bn of revenue (36.8%): a deficit of A$69bn, or 2.5% of GDP. Gross debt (deposits, borrowings and securities) stands at 51.7% of GDP.
- From surpluses to debt: Australia ran surpluses almost every year from 1998-99 to 2007-08 (+1.5% of GDP in 2007-08) and cut its gross debt from 22.8% of GDP in 1999-2000 to 9.9% in 2007-08. The financial crisis (−5.5% in 2009-10) and then Covid (−7.6% in 2019-20, −9.2% in 2020-21) pushed it back up to 57.9% of GDP.
- Covid, a subsidy shock: the JobKeeper wage subsidy, paid to employers, lifted subsidies from 1.1% of GDP in 2018-19 to 5.1% in 2020-21. The deficit then almost closed (−0.9% in 2022-23, with a Commonwealth surplus of +0.8%) as emergency measures ended, spending falling from 39.3% to 36.7% of GDP, before widening again (−2.5% in 2024-25).
- Modest public pensions, no social contributions: the means-tested public Age Pension costs 3.8% of GDP (2021-22), against 14.3% in France. Most retirement income goes through compulsory employer contributions to private funds (superannuation), which are not public revenue. Household income tax (11.4% of GDP) and company tax (6.6%) weigh more than in France.
- Between 2007-08 and 2021-22 spending gained +5.3 points of GDP while revenue stayed flat (+0.1). The increases come from health (+1.6), economic affairs (+1.2), sickness and disability benefits (+0.8), and defence and public order (+0.7). In 2024-25 the deficit sits mostly with the states (−1.7% of GDP) rather than the Commonwealth (−0.8%).
- Compared with France, Australia spent 18.0 points of GDP less in 2021-22 (39.3% against 57.3%) and levied 17.0 points less. The gap is almost entirely pensions (−10.6 points) on the spending side and the absence of social contributions (−16.6 points) on the revenue side.
Revenue and spending, year by year
For each fiscal year (July–June, labelled by the year it ends): left bar = revenue (grey), right bar = spending (colours), stacked by type. The gap between the two bars is the deficit (or surplus). Tap an item in the legend to isolate it. Amounts in billions of Australian dollars. The spending detail (by function or by nature) ends in 2021-22; taxes are detailed up to 2024-25.
What widened (or narrowed) the deficit
Change of each item in points of GDP between two fiscal years (latest detailed year: 2021-22). Spending that rises, or revenue that falls, widens the deficit (bar to the left); revenue that rises narrows it.
Public balance: 1.5% of GDP in 2008, −3.7% in 2022, a change of −5.2 points. Contribution of spending: −5.3 pt; of revenue: +0.1 pt.
- Pensions
- Health
- Other social benefits
- Interest on debt
- Education
- Economic affairs
- Other public spending
- Revenue
Detail by item · 2008 → 2022
| Detail by item | Side | 2008 | 2022 | Change (pt) | Effect on balance (pt) |
|---|---|---|---|---|---|
| Health (hospitals, outpatient care, medicines) | Spending | 6.23 | 7.81 | +1.58 | −1.58 |
| Economic affairs (transport, business support, energy) | Spending | 4.17 | 5.35 | +1.18 | −1.18 |
| Sickness and disability benefits | Spending | 1.82 | 2.63 | +0.81 | −0.81 |
| Defence, police, justice | Spending | 3.36 | 4.06 | +0.70 | −0.70 |
| Goods and services tax (GST, a VAT) | Revenue | 3.69 | 3.23 | −0.46 | −0.46 |
| Interest on debt | Spending | 1.34 | 1.72 | +0.38 | −0.38 |
| Education | Spending | 5.12 | 5.46 | +0.33 | −0.33 |
| Family, housing benefits, social exclusion | Spending | 3.16 | 3.49 | +0.33 | −0.33 |
| Other taxes on goods and services (excises, customs, transfer duties…) | Revenue | 5.49 | 5.17 | −0.32 | −0.32 |
| Environment, community amenities, culture | Spending | 2.13 | 2.28 | +0.15 | −0.15 |
| Unemployment | Spending | 0.63 | 0.68 | +0.05 | −0.05 |
| Corporate income tax | Revenue | 6.65 | 6.62 | −0.02 | −0.02 |
| Payroll, property and other taxes | Revenue | 2.82 | 2.85 | +0.03 | +0.03 |
| Pensions (old age + survivors) | Spending | 3.84 | 3.77 | −0.06 | +0.06 |
| General services (excluding debt) | Spending | 2.25 | 2.07 | −0.18 | +0.18 |
| Other revenue (sales, property income, transfers) | Revenue | 6.06 | 6.34 | +0.28 | +0.28 |
| Household income taxes | Revenue | 10.81 | 11.37 | +0.56 | +0.56 |
| Total revenue | Revenue | 35.52 | 35.58 | +0.06 | +0.06 |
| Total spending | Spending | 34.04 | 39.33 | +5.29 | −5.29 |
| Balance | Balance | 1.48 | -3.75 | −5.23 | −5.23 |
The drivers
Pensions and health
Public spending by function, % of GDP, up to 2021-22. Retirement income paid by superannuation (private funds) is not included.
- Public pensions · 3.8% (2022)
- Health · 7.8% (2022)
The demographic driver
Share of people aged 65 and over (%), World Bank.
- Aged 65+ · 18.1% (2025)
Public balance since 1971-72
% of GDP. Negative = deficit.
- Balance · −2.5% (2025)
Gross debt and net financial worth
% of GDP. Gross debt: deposits, borrowings and securities. Net financial worth also counts public servants’ pension liabilities.
- Gross debt · 51.7% (2025)
- Net financial worth · −28.3% (2025)
Covid: the JobKeeper subsidies
Subsidies paid by government, % of GDP, up to 2021-22.
- Subsidies · 2.1% (2022)
Who carries the deficit?
Balance by level of government, % of GDP.
- Commonwealth · −0.8% (2025)
- States and territories · −1.7% (2025)
- Local government · 0.1% (2025)
Australia and France
Same IMF government finance statistics for both countries, same scope (general government), in % of GDP; gross debt on the same perimeter (deposits, loans, securities, at market value). Australia counts in July–June fiscal years, France in calendar years: 2022 means 2021-22 for Australia. To the right of a gap chart, Australia is above France.
Public spending, % of GDP
- Australia · 39.3% (2025)
- France · 55.9% (2023)
Public revenue, % of GDP
- Australia · 36.8% (2025)
- France · 50.4% (2023)
Public balance, % of GDP
- Australia · −2.5% (2025)
- France · −5.5% (2023)
Gross public debt, % of GDP
- Australia · 51.7% (2025)
- France · 106.4% (2023)
Structure of revenue and spending
One bar per country and side, stacked by item, % of GDP.
- Pensions
- Health
- Other social benefits
- Interest on debt
- Education
- Economic affairs
- Other public spending
- Social contributions
- Household income taxes
- VAT
- Other taxes on goods and services
- Corporate income tax
- Payroll, property and other taxes
- Other revenue
Where Australia spends and levies more (or less) than France
Australia minus France, in points of GDP, same year. To the right, Australia is higher.
- Australia − France · 2022
Spending by nature
What public money pays for: wages, social benefits, purchases, investment… The largest gap is in social benefits (pensions first).
- Social benefits (pensions, allowances, reimbursed care)
- Public employee compensation
- Operating purchases
- Interest on debt
- Subsidies
- Investment
- Other transfers
Australia − France gap by type of spending, points of GDP
- Australia − France · 2022
Yearly data
Show the table of revenue, spending, balance and debt by year
| Year | Revenue | Spending | Balance | Balance (% of GDP) | Debt (% of GDP) |
|---|---|---|---|---|---|
| 2025 | A$1,022bn | A$1,092bn | −A$69bn | −2.5% | 51.7% |
| 2024 | A$978bn | A$1,023bn | −A$45bn | −1.7% | 50.0% |
| 2023 | A$923bn | A$946bn | −A$23bn | −0.9% | 48.9% |
| 2022 | A$832bn | A$919bn | −A$88bn | −3.7% | 52.8% |
| 2021 | A$728bn | A$921bn | −A$193bn | −9.2% | 57.9% |
| 2020 | A$682bn | A$833bn | −A$152bn | −7.6% | 52.4% |
| 2019 | A$694bn | A$718bn | −A$24bn | −1.2% | 42.0% |
| 2018 | A$655bn | A$679bn | −A$24bn | −1.3% | 41.2% |
| 2017 | A$608bn | A$646bn | −A$38bn | −2.2% | 41.0% |
| 2016 | A$576bn | A$620bn | −A$44bn | −2.6% | 39.4% |
| 2015 | A$555bn | A$602bn | −A$47bn | −2.9% | 35.6% |
| 2014 | A$538bn | A$584bn | −A$47bn | −2.9% | 32.2% |
| 2013 | A$516bn | A$557bn | −A$41bn | −2.7% | 28.4% |
| 2012 | A$483bn | A$548bn | −A$65bn | −4.3% | 26.3% |
| 2011 | A$447bn | A$516bn | −A$68bn | −4.8% | 21.8% |
| 2010 | A$419bn | A$491bn | −A$72bn | −5.5% | 18.7% |
| 2009 | A$418bn | A$462bn | −A$44bn | −3.5% | 13.8% |
| 2008 | A$420bn | A$402bn | A$17bn | 1.5% | 9.9% |
| 2007 | A$389bn | A$373bn | A$15bn | 1.4% | 9.8% |
| 2006 | A$363bn | A$344bn | A$19bn | 1.9% | 10.5% |
| 2005 | A$335bn | A$322bn | A$14bn | 1.5% | 11.7% |
| 2004 | A$310bn | A$300bn | A$10bn | 1.2% | 12.4% |
| 2003 | A$286bn | A$278bn | A$7.4bn | 0.9% | 14.2% |
| 2002 | A$263bn | A$267bn | −A$4.4bn | −0.6% | 16.2% |
| 2001 | A$256bn | A$252bn | A$3.8bn | 0.5% | 17.8% |
| 2000 | A$243bn | A$227bn | A$16bn | 2.4% | 22.8% |
| 1999 | A$225bn | A$220bn | A$4.8bn | 0.8% | — |
Sources and method
- ABS, government finance statistics. Government Finance Statistics, Annual, 2024-25: operating statement and balance sheet of total general government, the Commonwealth, the states and local government, 2015-16 to 2024-25. Taxation Revenue, Australia, 2024-25: taxes by type.ABS — Government Finance Statistics, AnnualABS — Taxation Revenue, Australia
- IMF, Government Finance Statistics (GFS). Revenue, spending by nature and by function (COFOG) of Australian general government from 1998-99 to 2021-22, and the balance since 1971-72; France is read from the same tables for the comparison. For the years they share, IMF and ABS figures match.IMF GFS (DBnomics)
- OECD, national accounts. GDP and GDP deflator by fiscal year, so that every ratio uses the GDP of the same fiscal year.OECD Table 1
- World Bank. Share of people aged 65 and over.World Bank SP.POP.65UP.TO.ZS
- Method. Spending = expenses + net investment in non-financial assets; balance = net lending or borrowing. Constant dollars: current dollars adjusted by the GDP deflator. “Investment” = gross investment (consumption of fixed capital included). The spending detail by function and by nature comes from the IMF and ends in 2021-22: it is aligned on the ABS total, the gap going to “General services” and “Other transfers”. Contributions paid to superannuation funds, which are private, are not public revenue.
- Further reading. Commonwealth Budget, Treasury Final Budget Outcomes, Parliamentary Budget Office.Budget.gov.auTreasury — Final Budget OutcomeParliamentary Budget Office