However, company tax is $2.6 billion ahead of expectations while superannuation taxes are now almost $600 million stronger than expected.
Despite these improvements, the government is expecting June tax revenues to be weaker than forecast. This, on top of the lift in late-year spending, is tipped to cut the 2023-24 surplus to about $10 billion.
When then-treasurer Josh Frydenberg first forecast the 2023-24 budget, he predicted a deficit of $66.9 billion.
Finance Minister Katy Gallagher said the government was helping put downward pressure on inflation.
“Delivering this second consecutive surplus is a key part of those efforts and ensures fiscal and monetary policy are aligned in bringing inflation down,” she said.
Loading
“After inheriting a trillion dollars of debt, the Albanese Labor government has turned the budget bottom line around by finding savings, reprioritising spending and slashing the former Coalition government’s waste.”
Separate figures from the Australian Office of Financial Management showed total government debt ended the financial year at $906.9 billion, compared with original expectations of more than $1.1 trillion.
While the budget is now in the black, Chalmers has forecast a deficit of $28.3 billion in 2024-25, which starts on Monday, and a $42.8 billion deficit the following year.
The stage 3 tax cuts starting next week are expected to cost $23 billion in the coming year and about $25 billion the year after.
Chalmers said measures such as tax cuts, energy bill relief and cheaper medicines would help Australians deal with inflationary pressures.
Cut through the noise of federal politics with news, views and expert analysis. Subscribers can sign up to our weekly Inside Politics newsletter.