The Commonwealth Net Operating Balance (NOB) has increased from June to June each year since the low point of -$67.8 billion in June 2020 when the economy was heavily impacted by COVID.
The increases in the Commonwealth Net Operating Balance from June 2023 compared to June 2022 were a combination of both increases in revenue and a relatively lower increase in expenses. This was observed across most jurisdictions for the same time.
Increases in Commonwealth revenue from June 2022 to June 2023 were due primarily to strength in company income tax and personal income tax.
A relatively lower increase in Commonwealth expenses from June 2022 to June 2023 followed two years of significant government stimulus and health expenditure (in response to the COVID-19 pandemic) and material spending in disaster relief packages for affected jurisdictions.
This Insights article compares June quarter (a) net operating balance of Commonwealth and total state (b) general governments to show the recovery during this time. Due to the nature of reporting June quarter data are often more complete and can be a useful comparison point across years.
For information on the classification of new government policies impacting the June quarter 2023 click here.
- June quarters are used for statistical relevance and coherence. June quarters are highly impacted by large taxation revenue from Commonwealth. Government Finance Statistics figures presented are current prices, original series.
- "States’ refers to the state sector in macroeconomic statistics, which covers all eight state and territory jurisdictions in Australia.