The Mid-Year Economic and Fiscal Outlook (MYEFO) provides updated information on the Government’s economic and fiscal outlook since the previous budget. This outlook focuses on a budget with lower deficits and less debt over the forward estimates. It has delivered improvements to the budget despite challenging global conditions. 

Key findings

• Net policy decisions in this MYEFO are positive, improving the budget position by $2.2 billion over the forward estimates.  
• The outlook identified a further $20 billion in savings and reprioritisations, and delivered improvements to the budget despite challenging global conditions.
• A return on every dollar of the revenue upgrade to the budget bottom line. It has been more than fifteen years since a government last did this.
• The economy is gathering momentum with GDP growth expected to increase over the forecast period.
• New measures include $10 billion to deliver up to 100,000 homes, $1.1 billion for more free mental health services, $435 million to help low‑income workers and $1.1 billion for the Cleaner Fuels Program.

Contents

• Part 1: Overview
• Part 2: Economic Outlook
• Part 3: Fiscal Strategy and Outlook
• Part 4: Debt Statement
• Part 5: Sensitivity Analysis
• Part 6: Statement of Risks
• Part 7: Australian Government Budget Financial Statements
• Appendix A: Policy Decisions taken since the 2025–26 Budget
• Appendix B: Supplementary Expense Tables and the Contingency Reserve
• Appendix C: Australia’s Federal Financial Relations
• Appendix D: Tax Expenditures
• Appendix E: Historical Australian Government Data