Deloitte Access Economics report shows stagnant wages and lacklustre jobs growth will leave budget $1.7bn worse off than projected five months ago

The Turnbull government’s budget deficit for the 2016-17 financial year is likely to be $38.3bn, nearly $2bn worse than projected five months ago, according to Deloitte Access Economics.

Deloitte’s twice-yearly Budget Monitor, released on Monday, shows stagnant wages and lacklustre jobs growth have weighed so heavily on personal income tax collections in Australia that they will trim $1.7bn from official revenue forecasts in 2016-17 and a further $600m in 2017-18.

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