This statement summarises the main budget aggregates for the Australian Government general government sector.

The fiscal outlook for Australia remains sound, with the Government forecasting an underlying cash surplus of $10.8 billion in 2006-07. Across the forward estimates the Government has maintained the budget in a surplus position after providing for substantial personal income tax cuts of $36.7 billion over four years commencing on 1 July 2006.

The Government’s sound fiscal management has seen the elimination of net debt in 2005-06 and the prospect of positive net worth in 2008-09. Such sound fiscal policy, along with the financial assets accumulating in the Future Fund, leaves the Government well placed to deal with the budget pressures of an ageing Australia.