Treasurer Jim Chalmers has triumphantly unveiled a $22.1 billion surplus for the past fiscal year.

Chalmers says that this surplus would save taxpayers “billions of dollars in interest on the trillion dollars of debt” bequeathed to them by their Liberal predecessors.

Finance Minister Katy Gallagher has laid out Labor's fiscal strategy for steering clear of approximately $12 billion in interest payments over a five-year horizon. 

She says the approach will have the dual benefit of trimming gross debt and slashing interest outflows by a hefty $12 billion over five years and a staggering $39 billion in the medium term.

Gallagher stressed that achieving a surplus was not an end in itself, as the government grapples with the challenge of funding critical areas like the NDIS. 

She said that by amassing a $22.1 billion surplus last fiscal year, the government has placed the budget “onto a more sustainable footing”, paving the way for vital investments in NDIS, healthcare, aged care, defence, and servicing the ever-present interest payments on the debt.

Chalmers elaborated on the sources of the government's fiscal windfall, attributing it primarily to increased personal and corporate tax payments. 

He noted that the robust labour market played the most significant role in this four-year improvement, with commodity prices making a substantial but secondary contribution.

However, the Treasurer remained cautious about future financial forecasts, citing uncertainties stemming from the global economic landscape, particularly in China, and the yet-to-be-felt effects of the Reserve Bank's interest rate hikes in the domestic economy. 

He tempered expectations, stating; “We're not currently anticipating a second surplus for the time being.”

Additionally, Chalmers acknowledged that a handful of issues from the independent review of the Reserve Bank were still under scrutiny. 

While supporting the review's recommendations in principle, he revealed ongoing consultations and deliberations, with certain aspects, such as the governance board's chairmanship, term limits, and the influence of key positions, remaining contentious points of contention.