Australian Federal Budget 2025-2026

The total forecast deficit as a result of the 2025-2026 budget is estimated to be $179.5 billion over the 2026 - 2029 financial years with:

• $42.1 billion in 2025-2026;
• $35.7 billion in 2026 - 2027;
• $37.2 billion in 2027-2028; and
• $36.9 billion in 2028- 2029. 

Yes it does, including:

• Personal Income Tax cuts: a reduction in the 16% tax rate for income in the $18,201 - $45,000 tax bracket by 1% from 1 July 2026 and a further 1% from 1 July 2027.
• Continued Energy Bill Relief: offering two $75 energy rebates per household.
• Support for Renters: increasing Commonwealth Rent Assistance to a maximum of 45%.
• Cheaper Medicines: lowering the maximum Pharmaceutical Benefits Scheme (PBS) patient co-payment for everyone with a Medicare card.
• Student debt reduction: subject to passing legislation all Higher Education Loan Program (HELP) debt will be reduced by 20%.

The Albanese Government has pledged $8.5 billion to expand bulk-billed GP visits, offer nursing scholarships, and training additional doctors. This funding is intended to triple the number of bulk-billed practices, with the objective of having 90% of GP visits bulk-billed by 2030.

Consistent with statements made in the Mid-Year Economic and Fiscal Outlook (MYEFO), the Albanese Government has allocated an extra $2 billion to the expansion of the Clean Energy Finance Corporation (CEFC) to help Australian households, workers, and businesses transition to renewable energy. This is estimated to unlock $8 billion of additional investment in renewable energy and low emissions technology. 

Additionally, the Prime Minister recently unveiled a $1 billion Green Iron Fund aimed at enhancing green iron manufacturing and supply chains.

Consistent with pre-budget announcements, the Albanese Government has confirmed plans to reduce all existing student loan debt by 20% subject to passing legislation in this regard. 

This follows measures announced in the previous budget modifying the indexation calculation for student debts.

The government has announced $5 billion will be committed to universal early childhood education and care:

• $3.6 billion is to lift wages of early educators;
• $1 billion is to establish the Building Early Education Fund to provide grants for the construction of new centres (previously announced); and
• $426.6 million is for the new 3 Day Guarantee which replaces the Child Care Subsidy Activity Test to ensure families are eligible for at least 3-days per week of subsidised childhood education and care.

While no doubt welcome, these changes aren’t exactly new, being previously announced prior to the budget and, with respect to the change to the Child Care Subsidy Activity Test, having already been legislated in February earlier this year.