Federal Budget Summary
The 2025-26 Australian Budget focuses on cost-of-living relief through tax cuts, energy rebates, and cheaper medicines. It prioritises strengthening Medicare and aims to improve housing affordability. The budget also invests in education and building a stronger Australian economy, while supporting equality and specific communities.
Housing Incentives & Help to Buy Expansion
Lower deposits, higher property price caps, and more government equity contributions aim to help more first-time buyers and families enter the housing market.
Ban on Foreign Buyers for Existing Homes
A temporary two-year restriction from April 2025 could reduce competition for established properties, potentially making it easier for Australians to purchase a home.
Construction Industry Boost
New incentives for apprentices and large-scale building plans aim to increase housing supply, support small construction businesses, and speed up project timelines.
Small Business Tax and Industry Relief
Breweries, distilleries, and hospitality venues benefit from paused draught beer taxes, while fairer competition measures and “Buy Australian” campaigns support local SMEs.
Digital & Cybersecurity Support
Ongoing government programmes encourage businesses to strengthen their digital presence and protect against cyber threats, promoting long-term resilience.
Extended Energy Bill Relief
Individuals and businesses can benefit from extra rebates on electricity bills, helping to manage rising living and operating costs.
Tax Cuts and Extra Take-Home Pay
From 2026 onward, individuals could see up to hundreds more dollars each year, making it easier to cover personal expenses or mortgage repayments.
Cheaper Medicines
From January 2026, prescription costs could drop to a maximum of $25, promising significant savings on essential healthcare for many households.
Student Debt Relief
A proposed 20% reduction on HELP debts, plus changes to repayment thresholds, could ease the financial pressure for graduates and working professionals alike.
Wage Growth & “Non-Compete” Clause Ban
Industries like aged care and childcare may see pay rises, while a clamp-down on “non-compete” clauses could open better job mobility and higher earning potential.
Winners & Losers of the Federal Budget
Winners
Low-Income Earners
Receive extra cost-of-living support payments and energy rebates.
Working Parents
Benefit from increased Child Care Subsidy, making it cheaper to return to work.
Bulk-Billing GPs and Patients
Higher incentives for bulk billing help keep out-of-pocket healthcare costs down.
Aged Care Workforce
Funding for staff ratios and wage increases creates more stable jobs in the sector.
Apprentices and Trainees
Continued wage subsidies and expansion of advanced manufacturing training programs.
Regional Communities
More regional infrastructure projects, faster broadband, and improved mobile coverage.
Clean Energy Industry
Funding boosts to green technology, hydrogen hubs, and R&D in renewables.
Farmers and Agri-Businesses
Grants and drought/relief funding to help with supply-chain disruptions and climate impacts.
Tech Startups
Continued R&D tax incentives and digital transformation grants
Universities in Key Fields
Extra placements in nursing, teaching, engineering, and tech fields to address skill shortages.
Losers
High Super Balance Holders
Super accounts over $3 million face a higher concessional tax rate (30%).
Some Middle-Income Earners
Those just above the threshold for cost-of-living payments may feel overlooked until Stage 3 cuts fully kick in.
Gas Producers with Windfall Profits
Additional resource taxes or levies on gas exports could dent large profit margins.
Smokers
Tobacco excise rose again, increasing cigarette costs and excise revenue for the government.
High-Carbon Emission Industries
Companies not pivoting to cleaner tech might face higher compliance costs or lose out on new grants.
Larger Importers
Changes to trade compliance and possible new import fees or carbon-border adjustments could drive up operating costs.
Disability Sector Providers with High Overheads
While the NDIS remains funded, some providers are concerned about cost controls and tighter program oversight.
Small Businesses Unprepared for Digital Mandates
Mandatory e-invoicing timelines are creeping closer; businesses not ready may face costs for software and training.
Big Banks
An increased “Bank Levy” or ongoing financial sector regulatory fees may slightly impact profits.
Individuals Over the New Home Buyer Cut-Off
Slightly stricter eligibility for some home-buyer support schemes means certain income brackets miss out on incentives.
Conclusion
In summary, the 2025-26 Federal Budget aims to balance immediate cost relief with long-term investments in housing, healthcare, and a sustainable economy, ensuring targeted support while paving the way for future resilience.
