The Australian Chamber of Commerce and Industry (ACCI) has congratulated the federal government for achieving back-to-back budget surpluses.

Australia’s largest and most representative business network said the result of two consecutive budget surpluses is a positive achievement.

In welcoming the result ACCI chief executive officer, Andrew McKellar expressed caution about the sustainability of the budget outcome.

“It is encouraging that the budget outcome has been underpinned by lower-than-expected government expenditures. That said, much of this seems to have been the result of delays and timing impacts,” Mr McKellar said.

“It may be that recent reforms to the NDIS and aged care, which were passed with bipartisan support, will help to further quell excessive growth in these areas of government expenditure, but the full impact of these changes remains to be seen.”

“Either way, business remains concerned that fiscal policy is now heading on an expansionary path and that the federal budget will fall back into significant structural deficit.”

Mr McKellar also expressed concern about the increased expenditure in off budget items which are concealing large amounts of government spending.

“The 2023-24 budget outcome shows spending lifting from 24.5 per cent of GDP the previous year to 25.2 per cent of GDP.

“Of greater concern is the 2024-25 budget forecast where spending is projected to increase to more than 26 per cent of GDP and remain above that level over the forward estimates.”

Mr McKellar is now calling on the government to show renewed fiscal restraint.

“It is vital the government maintains stronger discipline on spending and adopts a clear standard to ensure fiscal sustainability over the medium-term.”