Federal Budget 2025: what's in store for you?

The 2025 Federal Budget was announced by Treasurer Jim Chalmers on Tuesday night, paving the way for Labor’s re-election campaign.

The Federal Election has been called for May 3, and a five-week campaign is imminent.

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Education

Student debt repayments are set to be reduced by 20% if Labor is re-elected, eliminating $19 billion in debt for over 3 million students.

“University education is a life-changing opportunity, but it should not leave Australians with a lifetime of debt,” said Jim Chalmers to the House of Representatives.

Labor has also proposed free TAFE programs, aimed at “equip[ping] Australians for jobs of the future”.

Legislation has already been introduced to create 100,000 free TAFE institutions a year starting from 2027.

Tax cuts

The main point of contention in Chalmers’ budget is the $17 billion in tax cuts, which amounts to roughly $50 a week for the average income earner.

The Coalition have been opposing the proposal profusely, with Opposition Leader Peter Dutton vowing to undo Labor’s tax cut if he were to be the next Prime Minister.

This tax cut would cut taxes of up to $268 in its first year, and then $536 in the years to follow. The bill has already passed the House of Representatives, and is awaiting a final vote in the Senate.

Dutton told ABC News Breakfast that the bill is "just not going to help families today who are really suffering".

Minimum wages

The National Minimum Wage has risen by almost $7500 a year, a result of Labor supporting pay rises. This has caused wages to be boosted by up to four per cent.

A reform on non-compete clauses, which prevents workers from switching to other jobs within the same industry, is expected to boost wages of up to $2500 for those affected by such clauses.

Bulk billing

A record $8.5 billion will be invested in lifting bulk billing rates and bolstering the healthcare workforce, which Labor expects will make nine out of ten GP visits free by the end of the decade.

Treasurer Jim Chalmers assured, the incentives would mean “around 4,800 fully bulk billing practices across the country – making it easier to see a doctor and get the care you need”.

Women’s health

$793 million will be invested in women’s health, dependent upon a Labor election win. This is aimed at helping women save on contraception, provide more access to endometriosis and pelvic pain clinics, as well as strengthen support for women with menopause.

Help to Buy scheme

Labor intends to update the property price and income caps in the Help to Buy scheme, to allow eligibility for more first home buyers.

It aims to help 40,000 Australians over the next four years.

Chalmers also announced a ban on foreign investors from buying established homes, in hopes of alleviating pressure on the housing market.

“A plan to build Australia’s future”

This year’s Federal Budget seeks to bring cost-of-living relief, strengthen the healthcare system, boost housing affordability, invest in education, and make the economy “stronger, more productive and more resilient”.

Chalmers and the Labor party vow to build “a future we can all be proud of”.

However, many of these Budget policies are contingent upon the outcome of the federal election.