Treasurer Jim Chalmers has defended the government's track record on inflation on the eve of an anticipated rate hike.
The government has celebrated a deficit $6 billion lower than the May forecast but said there are tough times ahead for households.
The Reserve Bank is anticipated to increase the cash rate to its highest level since 2011 on Tuesday.
Treasurer Jim Chalmers confirmed the budget deficit for last financial year was $6 billion better than the $28.3 billion forecast in May.
The last time the cash rate was around this level was October to November 2011, meaning anyone who has bought their first home since that time has never had to service a higher borrowing level on their loan.
Mr Chalmers revealed the projected national debt was lower than forecast in the May budget, with health costs and other payments down $1.4 billion and revenue up $4.6 billion more than expected.
The treasurer pushed back on suggestions the government could do more to help households, pointing to global economic pressure and the Iran-US war as "absolutely disastrous" for family budgets in Australia.
While Mr Chalmers celebrated an improvement for the budget, he said that there would be "difficult months" ahead.
Pushed on whether the government could do more to meet the inflation challenge, Mr Chalmers said it had existed before the war in the Middle East.
Prime Minister Anthony Albanese also blamed global inflation as the primary issue driving up interest rates, and acknowledged some people were "doing it tough".
The Australian Bureau of Statistics is due to release the inflation figures for August on Wednesday.