Australia's second straight budget surplus is a result of the ongoing strength and reliance of Australian mining.
Once again, the Federal Government's final budget outcome underscores the critical role mining plays in sustaining Australia's economic and fiscal health, benefiting all Australians.
The Department of Industry, Science and Resources' September Resources and Energy Quarterly (REQ) shows that while lower prices were having an impact, our major mining commodities continued to make large contributions to Australia's export earnings, with iron ore contributing $138 billion, metallurgical coal $54 billion, thermal coal $37.2 billion and gold $33 billion.
Pleasingly, uranium exports continue to increase, earning Australia in excess of $1 billion in 2023-24 and is forecast to grow to $1.4 billion in 2024-25 and $1.7 billion by 2025-26.
The budget delivered a $15.8 billion surplus, a significant increase from the forecast $9.3 billion in May, highlighting the large forecasting variability experienced in recent years. Reduced demand for government programs and services, along with deferred spending, also contributed to this outcome.
But while it is clear mining remains the cornerstone of the economy, there are distinct challenges emerging, with concerns about economic activity in China and continued global economic and geopolitical uncertainty, impacting growth in demand for Australia's bulk commodities, and subsequently future budget outcomes.
The 2023-24 budget outcome and REQ forecasts reveal the vulnerability of Australia's economy to fluctuations in commodity prices, highlighting the pressing need for governments to prioritise mining investment to secure the nation's long-term economic growth and the budget's fiscal strength.
With these challenges confronting Australia head on, it is critically important that governments pursue productivity-enhancing policies that attract investment in mining, create more jobs, and increase the nation's economic resilience to withstand future economic downturns.
There is no question the confluence of restrictive policies are placing a mighty burden on the shoulders of Australian businesses, at a time when Australia needs more jobs, more opportunity, and more economic growth.
At a time when the Federal Government needs more revenue growth, not less, to balance future budgets.
We must make Australia an attractive destination for investment again, and steal back the advantage that our competitors have been gifted, courtesy of regressive economic, workplace and approvals policies.
Despite the mining industry's resilience, Australia's minerals industry is under pressure as supply and demand fluctuate, impacted not only from lower prices, but a diminished pipeline of projects and developments.
Without a major uplift in mining investment, in both our traditional and future-facing commodities, the economy and the government's budget outcomes will remain exposed to volatile commodity prices, threatening long-term growth.
