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Who Came Out On Top in the 2025-2026 Budget?

Who Came Out On Top in the 2025-2026 Budget?

With a federal election looming, this year’s budget is all about offering relief where it’s needed most — from cheaper power bills and student debt cuts to tax relief and child care support. It’s packed with big headlines and small print, but we’ve cut through the noise to highlight who’s winning, who’s waiting, and who’s missing out.

Winners

Tax Payers

  • Rate for $18,201–$45,000 income bracket drops to 14% by 2027.
  • Up to $536 in relief annually; even more with Stage 3 cuts.
  • Medicare levy thresholds lifted, exempting 1M+ low-income earners.

Essentials

  • $150 rebate for all households (two $75 payments) from July.
  • Around 1 million small businesses also eligible.
  • Expected to cut household electricity bills by 7.5%.
  • $8.4 billion to expand bulk billing and fund more GP trainees.
  • 50 urgent care clinics by mid-2026.
  • PBS medication cap reduced to $25 from January 2026.

Women

  • $1 billion to permanently provide up to $5,000 for women leaving violent relationships.
  • Another $1 billion for crisis and transitional housing for women and children.
  • Superannuation will now be paid on Commonwealth-funded parental leave.
  •  $573 million will be spent to increase Medicare rebates on long-term contraceptives.
  • IUD insertion rebate more than doubles: $91 → $215 and the rebate for removal will increase from $61 to $134.
  • New Medicare rebate for menopause health checks.
  • Endometriosis and pelvic pain clinics will be expanded from 22 to 33.

 

Families

  • From January 2026, every family gets three days of subsidised care per week — no work/study test required.
  • 90% subsidy retained for incomes under $83,280.
  • Removes key barriers to early childhood education.
  • Support extends to carers, job seekers and stay-at-home parents.
  • Designed to ease the financial and emotional load of early parenting.
  • Opens up opportunities for re-entering the workforce or study.

Students & Graduates

  • HELP debts cut by 20% on 1 June 2025 (average $5,520 wiped).
  • Repayment threshold lifted to $67,000 in 2025–26.
  • Indexation tied to lower of CPI or Wage Price Index.
  • Commonwealth Prac Payment begins July 2025.
  • $319.50 weekly payment during mandatory placements.
  • Means-tested and paid on top of other income support.

Non-Home Owners

  • Commonwealth Rent Assistance increased by 45%.
  • Around 1 million households to benefit.
  • Additional protections via new renter rights legislation.
  • Open to singles earning up to $100k, couples up to $160k.
  • Government can co-purchase up to 40% of home value.
  • Price caps adjusted for market and location.

Disability & Inclusion

  • NDIA to bring more staffing in-house, reducing reliance on contractors.
  • Funding supports stronger service delivery and public service growth.
  • Focus on efficiency, fraud prevention, and long-term sustainability.

Aged Care

  • $88.3 million to fund pay rises after Fair Work Commission ruling.
  • $292 million over five years to implement aged care royal commission reforms.
  • Builds on last year’s funding for better standards and worker conditions.
  • $2.5 billion over five years for in-home care services.
  • $380 million for aged care worker reforms.
  • New Aged Care Act launching July 2025.

Communities & Social Cohesion

  • $88.3 million to fund pay rises after Fair Work Commission ruling.
  • $292 million over five years to implement aged care royal commission reforms.
  • Builds on last year’s funding for better standards and worker conditions.
  • $2.5 billion over five years for in-home care services.
  • $380 million for aged care worker reforms.
  • New Aged Care Act launching July 2025.

Local Manufacturing & Innovation

  • $20 million to encourage consumers to buy locally made goods.
  • Aimed at strengthening domestic industry and supply chains.
  • Positioned as a soft response to global trade tensions, especially with the U.S.
  • $2 billion for renewable aluminium producers.
  • $1 billion for green iron investment.
  • $219 million to keep Whyalla Steelworks operational.
  • $219 million to support Whyalla Steelworks and avoid closure.
  • Up to $2 billion in credits for smelters switching to renewable power.
  • Response to tariffs imposed on Australian metals by the U.S.

 

Infrastructure

  • $1.2 billion added for recovery from ex-Tropical Cyclone Alfred.
  • Builds on $11.6 billion already allocated for disaster recovery over four years.
  • Funding includes social security payments and local recovery support.
  • $17.1 billion over 10 years for national infrastructure projects.
  • Includes $7.2 billion for Bruce Highway upgrades in Queensland.
  • Covers major works across all states and territories, including roads, stations, and safety upgrades.

Industries

  • $10,000 for housing construction apprentices.
  • Employers may claim up to $5,000 in hiring incentives.
  • Support for modern construction methods and upskilling.
  • Two-year freeze on draught beer excise increases.
  • Excise remission caps raised to $400,000 for brewers and distillers.
  • Wine Equalisation Tax rebate also increased.

Miscellaneous

  • Non-compete clauses to be banned for workers earning under $175,000.
  • Workers can move freely between employers or start their own business.
  • Government also cracking down on wage-fixing and “no poach” agreements.
  • $21.4 million over three years for sexual assault legal and support services.
  • Expands pilots of non-legal support services, such as culturally safe justice navigators.
  • Funding to explore why complaints are withdrawn and how justice processes can be improved.
  • $250 million over five years to protect 30% of Australia’s landmass by 2030.
  • 30 million hectares of bushland to be preserved with support from states and First Nations.
  • $3 million for captive breeding program for endangered Maugean skates in Tasmania.
  • $17 million in new military aid including communications, equipment, and defence support.
  • Takes total Australian aid to over $1.5 billion since the war began.

🐼 BONUS WINNER: Giant Pandas 🐼

Adelaide Zoo’s panda couple, Xing Qiu and Yi Lan, are set for a five-year, $3.8 million stay — officially making them the fluffiest millionaires in the budget.

On loan from China, the pair are part of a breeding program and a national crowd favourite.

No Change

  • Forecast deficit of $44.2 billion in 2025–26.
  • No surplus expected until 2035–36.
  • Revenue gains largely offset by new spending.
  • GDP growth: 1.5% this year, 2.25% next.
  • Inflation easing; unemployment steady at 4.25%.
  • Wage growth forecast at 3.25%.
  • No major new funding; $1 billion reallocated for sub readiness and shipbuilding.
  • Part of previously announced $50 billion decade-long plan.
  • Continued focus on naval defence and regional preparedness.

Losers

Foreign Buyers & Migrants

  • Ban on foreign citizens buying existing homes from April 2025.
  • Exceptions only for projects that increase housing stock.
  • $8.9 million allocated to audit foreign land banking.
  • Net migration forecast to fall to 225,000 by 2026–27.
  • International student intake under pressure, despite no hard cap yet.

Other Groups

  • $20,000 instant asset write-off ends 30 June 2025.
  • Reverts to $1,000 cap from 1 July — a sharp cutback.
  • Further $720 million cut to consultant and contractor spend.
  • NDIA, ATO and others shifting to direct hires.
  • Resulting from ongoing fallout from PwC’s tax scandal and increased scrutiny.
  • $5.8 billion loss due to personal income tax cuts.
  • $6.9 billion shortfall in tobacco excise from illegal markets.
  • ATO given $999 million to boost tax compliance and enforcement.

 

This is a budget built to ease pressure and win votes — offering immediate help to households, workers, and families. But while some will feel the difference quickly, others are left wondering what’s next. With an election on the way, the real test will be how much of this actually becomes reality.

More Resources

What are your thoughts on this year’s budget?

Source: ABC
Compiled & Edited by Tailored Accounts

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