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Chalmers may be set to pull a rabbit from the budget hat

An export boom and soaring business revenues have delivered a bonus to the taxman. But real wages falling back to 2008 levels could be politically difficult, as the Morrison government found out.

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Australia finally became a $2 trillion a year economy just before the pandemic hit, after a long and slow grind up from $1.5 trillion eight years earlier.

So it was something of a triumph – and a recognition that we’d dodged the worst of COVID-19 – when Treasury’s budget back in March forecast this financial year would see our economy earn a healthy $2.3 trillion.

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Chris Richardson is an independent economist.

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    Original URL: https://www.afr.com/policy/economy/chalmers-may-pull-a-rabbit-from-the-budget-hat-20220912-p5bhdz