Australian government spending was broadly flat in the June quarter of 2025, following a soft start to the year, and made no contribution to overall economic growth, data showed on Tuesday. Total public demand was almost unchanged at A$185.0 billion in the June quarter from A$184.9 billion in the March quarter. According to the Australian Bureau of Statistics, spending on operational items rose 1.0% quarter-on-quarter to an inflation-adjusted A$150.2 billion, up from A$148.7 billion in the March quarter. However, this was offset by a 3.9% decline in total investment in fixed assets by the government and public enterprises, which fell to A$34.8 billion. This component is expected to subtract 0.2 percentage points from GDP growth in the June quarter. In total, the ABS estimated that public spending made zero net contribution to second-quarter GDP.
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