The government earned more than it expected from income and company tax in the first three months of the financial year, helping reduce the size of its forecast deficit.
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In the three months to the end of September, the deficit was $545 million - $253 million lower than predicted in the government's budget six months ago.
The government's tax take was $101 million higher than expected.
Both businesses and workers paid more tax, but income from GST was lower than forecast.
A better performance from the ACC also helped boost the government's coffers.
Other numbers also pointed to a better-than-expected result in the financial statements.
The government's net debt was lower and its net worth higher.
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