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Australian Budget Update: Tax Revenue Boosted by AI Boom, Gold Prices, and Inflation
Australian Financial Review
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Details
- Date Published
- 18 Dec 2025
- Priority Score
- 2
- Australian
- Yes
- Created
- 18 Dec 2025, 08:30 am
Authors (1)
Description
Higher inflation and a turbocharged rally in gold and AI stocks provided a huge revenue lift, yet the nation remains on track for another decade of deficits.
Summary
Australia's mid-year budget update reveals a significant increase in forecast tax revenue fueled by high inflation, surging gold prices, and the AI-driven stock market boom. However, this revenue boost fails to rectify the budget deficit due to ongoing government spending. While the article highlights the economic impact of AI and gold, it does not explore AI-related safety or governance issues in depth. The focus remains on fiscal implications rather than on addressing safety concerns or regulatory measures pertinent to AI advancements.
Body
PolicyEconomyFederal budgetPrint articleLuke KinsellaReporterDec 18, 2025 – 6.13pmSaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginThe budget has received a turbocharged revenue boost from higher inflation, rocketing gold prices and the artificial intelligence-driven sharemarket boom, but economists say Treasurer Jim Chalmers cannot rely on this to return the budget to surplus.Labor’s mid-year budget update on Wednesday recorded the highest automatic upgrade to forecast tax revenue in two years, but it failed to improve the budget balance because of the cumulative impact of government spending decisions over several budgets.Loading...Luke Kinsella is a journalist based in The Australian Financial Review’s Sydney office. He was previously a policy analyst at Treasury. Email Luke at luke.kinsella@nine.com.auSaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreFederal budgetJim ChalmersAIInflationCompany taxIncome taxDonald TrumpRBACommonwealth BankMicrosoftNvidiaFetching latest articlesThe untold story of the most lethal Sydney to Hobart race in 26 yearsTony Davis24 new watches to ring out the year (from $170 to $218k)‘YIMBY is a misnomer. They haven’t got backyards’The 5 biggest corporate stuff-ups of 2025James ThomsonLeaders fail because they don’t understand one thing, says this CEOBega CEO reveals his latest health obsession (it’s not only protein)A first look at Melbourne’s new $150m luxury hotelBelinda JacksonThe new way to get to Antarctica? On board Aurora’s latest ship‘Every time I reach the peak, it’s the most alive I ever feel’Katie Page’s horse sale gets a brush with cultureMichael BaileyBillionaire Rinehart loses bid for helipad at pink-themed HQImmutable late accounts reveal $72m loss despite big revenue growth