Treasurer Jim Chalmers handed down the 2025-2026 Federal Budget this week, outlining a fiscal plan focused on cost-of-living relief, housing affordability, and economic stability.
With an upcoming federal election, the Budget delivers targeted support, but does leave several key tax reform issues unresolved. The key message is that while Australia’s economy remains resilient, challenges persist.
Summary of key proposals
- All taxpayers will receive modest tax cuts starting from 1 July 2026.
- Eligible Australian households and small businesses will receive an additional energy rebate of $150.
- The general co-payment for Pharmaceutical Benefits Scheme medicines will reduce to $25 for individuals who don't hold a concession card.
- All families will be eligible for at least 72 hours per fortnight (three days per week) of subsidised childcare without having to satisfy the activity test.
- Concessions will be applied to reduce student debts and repayments.
- The ‘Help to Buy’ program will be expanded to include higher income and property price caps.
- No changes to super- the Super Guarantee is currently legislated to increase from 11.5% to 12% on 1 July 2025.
These proposals are not set in stone. Anything can change before legislation passes through parliament.
If you would like more detail on the 2025 Federal Budget you can find it here.
General Advice Warning: The information provided in this article is general in nature and does not consider your particular investment objectives, financial situation, or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.
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