-- ANZ said it expects Australia's underlying cash deficit to be little changed from the Mid-Year Economic and Fiscal Outlook at AU$37 billion in fiscal 2025 to 2026 and AU$36 billion in fiscal 2026 to 2027, with deficits averaging about 1% of gross domestic product likely over the forward estimates through to fiscal 2029 to 2030, according to a Monday note by the bank.
ANZ said it expects the budget to include additional temporary cost-of-living relief for households and businesses in the near term, including a possible extension of the fuel excise reduction.
The bank said it expects a medium-term focus on energy security, given Australia's reliance on imported refined petroleum products, including via the Future Made in Australia package, alongside a previously announced increase in defense spending.
ANZ said changes to the taxation of investment properties are expected to strengthen the fiscal position over the next decade and provide a path for revenues as a share of GDP to rise.