Federal Budget 2025-26 Overview

 Here’s a clear, current overview of the 2025-26 Australian Federal Budget — the key measures, priorities, and what it means for households and businesses. The Federal Budget was delivered by Treasurer Jim Chalmers on 25 March 2025, and its policies largely shape the 2025-26 financial year and beyond. Budget 2025-26+1

Australian Federal Budget 2025‑26 – Major Highlights

ABCFind out if you're among the budget's winners or losersApr 16, 2025KPMGAustralia – Highlights of Federal Budget 2025-26Apr 16, 2025EYFederal Budget 2025-26Apr 16, 2025The GuardianThe complete 2025 Australian budget: choose the news coverage that matters to youApr 16, 2025The GuardianAustralian federal budget tax cuts: how much will your household receive?Apr 16, 2025

📊 1. Cost-of-Living Relief and Tax Cuts

One of the central themes of the 2025-26 Budget is easing cost-of-living pressures for Australians.

New Personal Tax Cuts

• The 16% tax rate (which applies to income between $18,201 and $45,000) will be reduced to 15% from 1 July 2026.
  
• It will then fall further to 14% from 1 July 2027.
  These cuts aim to put more money in people’s pockets and help households keep more of what they earn. Budget 2025-26
  

Energy Bill Relief

• The Government is extending electricity bill rebates through to the end of 2025. Eligible households and around one million small businesses will receive two quarterly $75 rebates off their power bills (total $150). Budget 2025-26
  

🏡 2. Housing and Homeownership Support

The Budget includes measures to help Australians facing housing affordability challenges:

• Expansion of the Help to Buy shared equity scheme, which assists low-income earners to buy a home with a smaller deposit and government equity support. ANZ
  
• A ban on foreign investors purchasing existing dwellings for two years commencing 1 April 2025, aimed at reducing competition in the resale market. ANZ
  

🩺 3. Health and Medicare Investments

Healthcare spending is another priority:

• Significant funding for bulk billing incentives, aiming to increase access to bulk-billed GP visits (making more visits free at the point of care). news.moneywise.com.au
  
• Lowering the maximum cost of medicines under the Pharmaceutical Benefits Scheme (PBS) — from $31.60 to $25 per prescription from 1 January 2026 — reducing medication costs for many Australians. Budget 2025-26
  

🎓 4. Education and Student Loan Relief

The Budget makes substantial changes for students and graduates:

• The Government plans to reduce all outstanding HELP and related student debts by 20% (about $16 billion in total), subject to legislation. SBS Australia
  
• Repayment thresholds for student loans will rise from $54,435 to $67,000 in 2025-26, meaning many graduates will pay less in compulsory repayments. SBS Australia
  

💼 5. Workforce and Employment Support

To boost participation and worker mobility:

• A ban on non-compete employment clauses for many low- and middle-income workers is included, allowing greater labour market flexibility. Wikipedia
  

📌 6. Budget Position and Outlook

• The Budget forecasts a fiscal deficit for 2025-26, with projections showing deficits continuing in the coming years despite new measures. Financially Sorted
  

🧾 In Summary

The 2025-26 Budget focuses on cost-of-living relief, tax cuts, housing support, healthcare affordability, and education costs. It aims to ease financial pressures for households and boost economic participation, while also maintaining significant government spending across essential services. Budget 2025-26+1

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Disclaimer: This newsletter contains general information only. No responsibility can be accepted for errors, omissions or possible misleading statements. No responsibility can be accepted for any action taken as a result of any information contained in these articles. It is not designed to be a substitute for professional advice and does not take into account your personal circumstances.