Money comes in. Money goes out. And the Federal Budget is set. Early to arrive, this year’s Budget
has had every news and media outlet talking. Unlike last year, we’re starting this year’s Budget in a deficit, wrapped in an uncertain economy, global trade wars and rising tariff tensions to boot.
While that all sounds a tad gloomy, the Government is addressing these challenges. And using existing funds to bring you less tax, energy rebates and disaster relief for those impacted by Cyclone Alfred. Medicare and education cash injections will also ease the sting of everyday cost-of-living for many Australians. Here are some of the high ticket items that have been proposed in the 25/26 Budget:
Tax
Keep more of what you earn with tax cuts Few people like paying tax, and the Government
plans to lower tax rates by a further 2% over the next two years.
If these changes go ahead, every Australian taxpayer will receive a tax cut of up to $268 from
1 July 2026, increasing to $536 from 1 July 2027.
How does this translate to money in your pocket?
Combined with the first round of tax cuts from 2024-25, this means you can save $2,229 in tax
in 2026-27 and $2,548 in 2027-28. Or $50 a week.
Medicare Levy
Higher income limits for low-income Aussies. From 1 July 2024, the Government is raising the
low- income thresholds for the Medicare levy. This means more low-income earners, families,
seniors, and pensioners won’t have to pay the levy – or will pay less. It’s part of a plan to help
with the rising cost of living.
Energy
Keep your lights on with extended Energy Bill Relief If you’ve been loving the $300 that goes towards
your house or small business energy bills, you can expect an extra $150 off your energy bill as of
1 July 2025. This will be received quarterly in the second half of 2025.
Healthcare
Get bigger Medicare rebates from GP visits. If you’ve ever balked at a GP bill or had to delay
or cancel a visit due to out-of-pocket costs, these new Medicare rebates will mean you can
go to the doctor when you need to.
From 1 November 2025, the Medicare rebates for a standard GP consultation will increase to:
- $69.56 from $42.85 for metropolitan areas
- A maximum of $86.91 for remote areas.
Pay less for medicines as a Medicare card holder As of 1 January 2026, you won’t pay more than
$25 for a medicine script covered under the Pharmaceutical Benefits Scheme (PBS), which
is currently $31.60. Pensioners will continue to pay the locked in fee of $7.70.
Women
Women’s health is in top focus, with more affordable options across different life stages.
This includes everything from reproductive health to menopause.
What women can look forward to:
- 150% increase in Medicare rebates and bulk billing for IUD insertion and removal
- Cheaper and more accessible oral contraceptives, as well as treatment for uncomplicated urinary tract infections
- Medicare rebates for menopause assessments
- PBS listings for both oral contraceptives and menopause hormone therapies, with around 150,000 women saving hundreds of dollars each year
Better wages for women
Aged care workers and childhood educators, a predominantly female workforce, can expect a boost to earnings in this sector.
Gender equality will now sit under the Fair Work Act 2009 to ensure the work of women is not undervalued in female dominated industries.
More support and protection for domestic violence victims
The Government is investing $21.4 million over three years from 2025 to better support and
protect women and children experiencing domestic violence.
There will also be a strong focus on helping First Nations communities, with $21.8 million going
towards prevention, early intervention, and response services between 2025 and 2026.
Boosting Construction
New incentives for eligible apprentices
More construction tradies = more housing. The Government plans to entice more people into housing construction trades with the Housing Construction Apprenticeship stream as part of the new Key Apprenticeship Program. From 1 July 2025, eligible apprentices in housing construction occupations will receive up to $10,000 in financial incentives over the course of their apprenticeships. An added bonus:
employers of apprentices in priority occupations may also be eligible for up to $5,000 as a Priority Hiring Incentive, which includes many occupations relevant to housing construction.
Education
Shave a further 20% off student debt
Student debt can hold many young Australians back, as they try to earn a living after uni. Students can look forward to a further 20% off their Higher Education Loan Program (HELP) debts before indexation is applied on 1 June 2025. Around 70% of people repaying a HELP debt are 35 or younger, which is a key time for saving, buying a home or starting a family. If passed, this one-off discount will benefit more than 3 million Australians. A uni graduate with an average debt of $27,600 will have $5,520 shaved off their outstanding loan. Fairer repayments for all students As a student, you will only be asked to start repaying your loan once you earn $67,000. And this will be based on a portion of your income, not your total income. This is up from the current repayment income threshold of $54,435. Anyone earning less than $180,000 will also pay lower compulsory repayments. These reductions will kick in on 1 July 2025.
Social Security
Better childcare subsidies for all families
The cost of childcare means many parents, particularly mums, who either have to forgo their careers or contribute almost all of their salary to childcare fees. As of 5 January 2026, all families – except those
earning more than $533,280 – will get 3 days of subsidised childcare per fortnight.
How much will your family be better off?
These subsidies are intended to encourage families, particularly women, to work, study, volunteer, or engage in other activities they choose to.
Housing
Co-buy your house with the Government
The “Help to Buy” scheme has been around since 2024 and allows first home buyers the
chance to co-buy their property with the Government. This lowers deposit and mortgage
repayments. The Government will now open this up to existing homes, offering 30% of the purchase price for an existing home and up to 40% of the purchase price for a new home.
No changes to super
The Government did not announce any major superannuation changes in the 25-26 Budget, and did not announce any changes to the timing of the final Super Guarantee increase. The Super Guarantee rate is currently legislated to increase from 11.5% to 12% on 1 July 2025.
Disclaimer
The information provided is current as at 25 March 2025 and is subject to change. This article is not intended to contain personal financial, taxation or legal advice and should not be relied on as such. Any advice in this article is general advice only and does not take into account the objectives, financial situation or needs of any particular person. You should obtain specialist financial, taxation or legal advice relevant to your circumstances before making financial decisions. Whilst every care has been taken in the preparation of this information, neither Community Chapman Welsh or the Licensee guarantees the accuracy or completeness of it and do not guarantee any particular outcome. Past performance is not indicative of future results.
