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(Bloomberg) — Australia posted back-to-back budget surpluses for the first time in 16 years.

The underlying cash surplus was A$15.8 billion ($10.9 billion) in the 12 months through June 30 this year, or 0.6% of gross domestic product, according to the Treasurer’s office. That exceeded a A$9.3 billion windfall predicted in the May budget.

“Our bigger than expected surplus in the year just gone is entirely due to lower spending, with the tax take also lower,” Treasurer Jim Chalmers said in a statement.

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It comes as the center-left Labor government faces an election before the end of May, with recent polling showing mounting discontent as inflation remains stubborn and interest rates stay high.

A Newspoll survey published in the Australian newspaper showed primary support for Labor has dipped to its equal lowest since the 2022 election with housing — including rents and mortgages — emerging as the most significant cost-of-living issue, eclipsing grocery and energy bills.

As many central banks around the world enter a rates-easing cycle, the Reserve Bank of Australia this month held its benchmark at a 12-year high of 4.35%. Governor Michele Bullock has warned rates are unlikely to come down anytime soon, as the central bank waits for inflation to “sustainably” fall into its target bracket of 2-3%.

RBA’s Hawkish Rate Path Lands Bullock in Hot Seat as World Eases

The last time Australia achieved back-to-back surpluses was in the 2007 and 2008 financial years.

“Posting back-to-back surpluses is a key part of our plan to take pressure off inflation while providing relief to families, who we know are under pressure,” Finance Minister Katy Gallagher said in the statement.

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