Further tax cuts and power bill relief are on their way – if the Albanese government is returned to office in May.
Treasurer Jim Chalmers has centred household budget relief in his fourth budget, mere weeks from voters heading to the polls.
The budget documents detail $785.7 billion of spending for 2025-26 financial year, delivering a projected deficit of $42 billion.
Here are the key winners and losers.
WINNERS
Taxpayers
Australians will benefit from two additional tax cuts if Labor is re-elected.
The rate of tax paid on earnings between $18,201 and $45,000 will be reduced from 16 per cent to 15 per cent from 1 July 2026.
The following July, the rate will be cut further to 14 per cent.
It means anyone earning more than $45,000 will save $268 initially and $536 the following year.
The key pre-election promise will cost the government $17.1 billion.
First home buyers
More first home buyers will have access to the government's Help to Buy scheme through an increase to both income and property price caps — costing the budget $800 million.
The scheme allows 40,000 eligible buyers to access up to a 40 per cent contribution towards their new home, with a deposit as small as 2 per cent.
The income cap will change from $90,000 to $100,000 for individuals and from $120,000 to $160,000 for couples or single parents.
First-home buyers will get more support under the 2025 federal budget. Source: SBS News
Women's health
Women experiencing endometriosis, pelvic pain, perimenopause, and menopause will be able access support at one of 33 specialist clinics funded as part of an additional $240 million directed towards women's health.
The budget boost follows the $573 million already committed to women's health, with Labor adding several medications to the Pharmaceuticals Benefits Scheme.
Coming into effect on 1 May, the cheaper medicines include several oral contraceptive pills, endometriosis medication Ryeqo, and IVF medication Pergoveris.
Households
Labor announced on Sunday that all Australian households and businesses will receive an extra $150 in energy bill relief if the government is re-elected.
The plan will see the rebates, paid in two $75 instalments over six months, extended until the end of 2025.
The federal funding follows last year's $3.5 billion power bill sweetener which offered $300 per household. The extension adds $1.8 billion to the budget over the forward estimates.
Low and middle-income workers
A ban on non-compete clauses will allow workers to move to a competing employer or start a competing business — for those earning under the $175,000 threshold.
The government said more than three million workers, including those in childcare, construction, and hairdressing are covered by such clauses.
Research suggests the changes could improve productivity and lift wages by up to 4 per cent.
Beer drinkers
In a win for beer drinkers, the Albanese government has committed to freezing the draught beer excise for two years from August 2025.
Tuesday's budget has revealed the measure will cost the government $165 million over five years.
It means that two years from now, a pint will be around five cents less than otherwise expected.
Beer drinkers are a winner in the 2025 federal budget. Source: Getty / Bec Hannaford
Refugees
The government hopes to boost refugee employment figures with a $7.7 million extension to its Economic Pathways to Refugee Integration program.
It has also accounted $3.5 million over three years for refugee resettlement.
Multiculturalism
To increase social cohesion, the government is committing $178 million towards measures including the restoration of Synagogues, community centre improvements and security upgrades.
Some $300,000 has also been set aside to create a national database for hate crimes and incidents.
LOSERS
Tax dodgers
The government will crack down on Australians fudging their tax returns, committing $999 million to the Australian Taxation Office on measures including the tax avoidance taskforce in a bid to strengthen tax compliance.
The investment will bring in an additional $1.8 billion in tax revenue over five years.
Russia and Belarus
The government will extend its 35 per cent tariffs on goods from Russia and Belarus.
The tariff was introduced in April 2022 after Russia's invasion of Ukraine and will be extended until 24 October 2027.
Tobacco criminals
The government has directed $156.7 million towards disrupting the illicit tobacco trade which is partially affecting its revenue.
Revenue from tobacco has taken a big hit in this budget, down $6.9 billion over the five years from 2024-2025 to 2028-2029.
Welfare recipients
The government did not heed calls from social service groups for increases to Jobseeker and other welfare payments — with no new announcements made in this budget.
Budget bottom line
The government's tax cut promise adds $17 billion to at least $40 billion in pre-election commitments.
There are several revenue losses including $6.9 billion from tobacco and $1.9 billion in company tax receipts over the five years from 2024-25 to 2028-29 – excluding new policy decisions.
Although the 2025 budget is better than predicted, the treasurer still delivered a deficit of $42 billion in 2025-26.
