Australia has achieved its first budget surplus in 15 years due to a significant increase in tax revenues.

Australia announced a budget surplus of A$22.1 billion ($14.2 billion) for the fiscal year ending June 2023, surpassing previous estimates by five times. This was achieved thanks to robust employment and significant profits from the mining industry, marking the first budget surplus in 15 years.

According to data from the Treasury, the excess amount was approximately 0.9% of the country’s total economic output. The administration plans to contribute 95% of any increased income to the overall budget in an effort to prevent contributing to inflation.

The Labor government’s May budget predicted a surplus of A$4.2 billion, a significant improvement from the deficits caused by the pandemic in the past two years.

The budget is expected to go back into deficit this year due to increasing expenses on healthcare, energy, and defense. Rising interest rates and a sluggish global economy are likely to impact the domestic job market.

In an interview with ABC News Breakfast, Treasurer Jim Chalmers stated that it is not currently expected that there will be a second occurrence.

“We understand that this is not the ultimate goal, but rather a crucial and solid foundation to confront the upcoming uncertainties. The financial constraints are only increasing and not diminishing.”

The government reduced gross debt by A$87.2 billion and will save approximately A$12 billion in interest payments over the next five years, thanks to improvements in banking revenue.

In July, Chalmers stated that the surplus for the previous fiscal year was expected to be slightly more than A$20 billion.