2025 Federal Budget

Treasurer Jim Chalmers has delivered the Labor Government’s 2025-2026 Federal Budget headlined by fresh tax cuts and other cost-of-living relief. The measures have sent the Budget back into the red after two consecutive years in the black.

The current electricity subsidy will be extended, with the $75 quarterly rebate remaining until the end of 2025, at a cost of $1.8 billion.

There’s a strong focus on healthcare funding with the Government lowering the maximum cost of medicines on the Pharmaceutical Benefits Scheme (PBS) for everyone with a Medicare card and no concession card. From 1 January 2026, the maximum copayment will be lowered from $31.60 to $25.00 per script and remain frozen at $7.70 for pensioners. There is also additional funding to encourage bulk billing with an estimate that 9 out of 10 GP visits will be bulk billed by 2030.

The Government will reduce all outstanding Higher Education Loan Program (HELP) and other student debts by 20 per cent, subject to the passage of legislation. This will affect around 3 million Australians, and is in addition to the indexation cuts that have previously reduced outstanding loan repayments.

The Government will also increase the amount that people can earn before they are required to start paying back their loans from $54,435 in 2024–25 to $67,000 in 2025–26. No one will pay more under the new system, and compulsory repayments will be lower for people earning under $180,000 and above the current minimum threshold.