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Productivity collapse blows deep hole in federal budget

October 13, 2025 - 00:05 -- Admin

According to analysis from the Parliamentary Budget Office (PBO), the federal budget could face a $58 billion revenue decline if average productivity growth remains at 0.5% over the next four years. This forecast is deemed credible by economists amid criticism of Treasurer Jim Chalmers’ higher estimate of 1.2%. Australia’s productivity growth has averaged only 0.1%

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