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For the second year in a row, the Australian Government has delivered a surplus which this year is projected to be $9.3b. As with last year s Budget, the 2024 Budget was delivered against a continued backdrop of inflation (albeit moderation), cost of living pressures, high interest rates, and increasing geopolitical instability. It has tried to walk a fine line of providing incentives in nationally strategic areas (particularly in relation to the energy transition) without fuelling demand pressures which threaten to increase inflation and interest rates. Time will tell whether this will be successful.

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