This report combines Commonwealth, state and territory budget data to examine the fiscal outlook across all levels of Australian government. Compared to the 2024-25 outlook, all the main budget aggregates have worsened as a share of gross domestic product at the national level. This reflects a deterioration in these aggregates across most jurisdictions.

The report shares outcomes of an audit on Victoria's financial report and an independent perspective on the state's financial outcomes and risks to fiscal sustainability. It also shares the audit outcomes of state-controlled material entities. The report provides recommendations for the Department of Treasury and Finance and material entities.

This briefing note uses data on market prices, production and revenue from Adani’s Carmichael Coal Mine, to estimate the discrepancy between the royalties paid by Adani and the royalties that might have been expected by the Queensland Revenue Office. It finds that Adani appear to have underpaid coal royalties by almost $400 million.

When introduced in 2000–01, revenue from Australia’s Goods and Services Tax (GST) was expected to grow in line with the overall Australian economy, providing a secure revenue source for state governments to fund services. This has not occurred. This paper shows that short-changing of the states is likely to get worse.

Climate change is making natural disasters more frequent and more intense, increasing costs for households, businesses and governments. This includes local governments, which are responsible for community infrastructure and facilities. This paper makes the point that the costs of climate change in Australia are increasing rapidly, while local government revenues are growing far more slowly.