The report makes recommendations to the government to improve economic inclusion and inform decision making. It outlines the areas where more action is required to give Australians the opportunity to participate and engage in society and to build a stronger safety net to assist people who need support. The report provides 13 recommendations.

Large portions of spending by national governments can be considered mandatory. Drawing on practices from eight OECD countries, this paper examines how governments define, monitor and review mandatory spending. The analysis suggests that mandatory spending should be reviewed regularly, included in fiscal rules and budget processes, and be subject to clear accountabilities to parliament.

Australia’s consolidated government accounts bring together federal, state and local governments spending and revenue statistics. This gives the most complete picture of the nation’s fiscal position. The spending trends outlined in this report highlight that Australia’s fiscal system is inconsistent and inflexible. The analysis points to six potential issues in current policy setting processes.

Under the International Monetary Fund (IMF’s) Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. The IMF concluded the Article IV consultation with Australia on February 9, 2026. It finds the Australian economy is managing a soft landing and economic recovery is expected to continue in the near-term.

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.