Jul 14, 2026 – 3.00pmThe federal government’s return to budget surplus relies on unprecedented restraint in NDIS spending, shrinking the public service and allowing bracket creep to push the tax burden on workers to record highs, assumptions the Parliamentary Budget Office warns may be unrealistic.The independent budget watchdog on Tuesday warned that Treasurer Jim Chalmers’ fiscal strategy was also vulnerable to the rapid rise in state government debt, which could eventually drive up federal borrowing costs and increase pressure on the Commonwealth to boost funding to the states.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Chalmers’ budget surplus rests on ‘unrealistic’ assumptions: PBO
The budget watchdog warned that the forecast surplus in 2035 relied on unprecedented restraint in NDIS spending, cuts to the public service and record income taxes.
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