Australia's finances are in much better shape than previously thought but the budget's lucky run is unlikely to last.

A stronger jobs market and higher-than-expected tax revenue have left the federal budget $18 billion better off, capping the biggest nominal improvement to the nation's bottom line in a parliamentary term, Treasurer Jim Chalmers said on Monday.

The final budget outcome showed a deficit of just under $10 billion for 2024/25, an improvement on the government's original forecast of a $28 billion deficit.

With debt at 0.4 per cent of Australia's gross domestic product, Australia's fiscal position was one of the strongest in the developed world, Dr Chalmers said.

That was in part down to the government exercising spending restraint, finding $14.4 billion in savings, and bank

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