Morrison releasing budget review amid deficit 'blowout' prediction

A new report predicts a $24 billion deterioration in the budget over the next four years.

Treasurer Scott Morrison at a press conference at the Commonwealth Parliament Offices in Sydney, Monday, Sept. 19, 2016. (AAP Image/Mick Tsikas) NO ARCHIVING Source: AAP

A report by Deloitte Access Economics says sluggish wage and jobs growth will make it harder to achieve a budget surplus.

It says the lack of bipartisanship in parliament will weigh on the budget, which it expects will show a deficit of $40.5 billion for 2016/17, a $3.4 billion deterioration since May.

Labor is warning a further blowout in the budget deficit will put Australia's triple-A credit rating at risk.

Treasurer Scott Morrison will hand down his mid-year budget review on December 19th.