Maybe all smoke and mirrors yet, it's all that bloody coal which...

Maybe all smoke and mirrors yet, it's all that bloody coal which we can't use but we can sell it to everyone else to make CO2 to allow the trade winds to blow it all over the country again, very strange that.

“Certainly there’ll be a substantial improvement this year because of a few things, not just commodity prices, but also lower unemployment and stronger wages growth,” he told ABC radio.

“But the numbers are still bouncing around a bit. There are still a couple of decisions to finalise and we don’t print the Budget until the weekend so it’s a bit premature.”

However, it seems that the surplus celebrations might not last for long, as Chalmers explains that the budget is expected to return to deficit due to a variety of factors.

“The other thing is even with this quite substantial near-term improvement in the Budget, the pressures on the Budget in the third and fourth and subsequent years are actually intensifying rather than easing,” he said.

“We’ve got a structural challenge in the Budget, which isn’t dealt with by this temporary improvement.”

According to Chalmers, it’s still too soon to say whether a surplus is a real possibility. He claims there are still a few details to finalise and that the budget won’t be printed until the weekend, so the public will just have to wait.

“But your broader point about whether or not there’s an improvement, there is – in the near term – a substantial improvement, but then a deterioration after that,” he said.

“And it is partly because of the prices that we’re getting for our exports, but also we are over-performing when it comes to the unemployment rate and when it comes to the beginnings of wages growth, which is very welcome, and that feeds into a better bottom line in the near term as well.”