Australia Tackles Property Tax Breaks, Disappoints on Deficit

Australia will overhaul tax settings that have long favored property investors and assist households and firms grappling with soaring fuel costs in a budget that outlined deficits across the forecast horizon.

Treasurer Jim Chalmers’ first budget since the center-left government won a landslide election victory 12 months ago showed this year’s deficit at A$28.3 billion, or 1% of gross domestic product. It’s then expected to widen to A$31.5 billion in fiscal 2027 and remain in the low 30s to June 2029.

That was above economists’ median estimate of a A$26.7 billion shortfall in the current year, and A$25 billion ...