In July this year, the Coalition Government projected a return to budget surplus by the year 2020/21.
But the latest figures from Economics analyst Deloitte has forced Australian Treasurer Scott Morrison to admit this target may now be out of reach.
The Deloitte budget report, released today, projected the deficit would likely increase by another $24 billion over the next four years.
Report author Chris Richardson said slow wages and jobs growth is to blame.
"The biggest single chunk of Australia's economy, the biggest single chunk of our budget are the wages we earn, they are growing at a record low pace," Mr Richardson said.
"The pace of job growth is also not crash hot.
"That combination means there are still further write downs in the federal budget."
The report predicted a federal budget blowout over the next four years could put Australia's triple A credit rating at risk.
Shadow Minister for Finance Jim Chalmers said a further economic dip would compromise confidence in the Australian economy.
"If Scott Morrison and Malcolm Turnbull lose Australia's triple A credit rating, it will push up mortgage repayments and it will smash confidence in the Australian economy."
Less than a month from the Government's mid-year budget update, Treasurer Morrison insisted it's high time Labor, the Greens, and the Senate crossbench passed the Government's proposed savings legislation.
Including $50 billion in company tax cuts.
"They're blocking savings of around $19 billion. So, if they're so concerned, like they say they are, about the fiscal position of the budget, well, pass the savings," Mr Morrison said.
But Greens leader Richard Di Natale argued cutting company tax is not the answer.
"Something needs to be done, and I can tell you something for free, the answers not giving big tax cuts to the wealthiest Australians, it's not giving an even bigger tax cut to the wealthiest businesses across the country."
Parliament today entered its final sitting fortnight for 2016 and the Government is working overtime to pass several bills before the parliamentary year is through.
Including an industrial relations bill seeking to re-establish the Australian Building and Construction Commission.
Prime Minister Malcolm Turnbull urged Senators to support the legislation which triggered the July election.
"The ABCC Bill seeks to do no more than ensure the rule of law applies to the building and construction sector," the Prime Minister said.
"These are good reforms, vital economic reforms, and we will be encouraging the Senators to support them."
But crossbench Senator Nick Xenophon insisted amendments to the legislation would help ensure better Government policy in the long-run.
"If there are amendments that improve it from the crossbench, from others, then you actually end up with, I think, much better public policy and something more workable in the longer term."
Adding to the coalition's complications was One Nation Senator Rod Culleton's indecision on how he would vote.
Senator Rod Culleton chose to represent himself in the High Court as it heard concerns over his election eligibility given he had a larceny conviction at the time of the July poll.
It's since been annulled but was already the cause of clear divisions within One Nation.
One Nation leader Pauline Hanson said she was concerned for Senator Culleton's mental health.
"He is going through a tough time and I do worry about his mental condition."
Senator Culleton will be replaced if his election is found to be invalid.
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