“To ensure more Australians earn more – and keep more of what they earn.”

 That was the core promise from Treasurer Jim Chalmers in this year’s Federal Budget, which focuses squarely on easing cost-of-living pressures and boosting the long-term resilience of the Australian economy.  With many households still feeling the financial squeeze, the 2025–26 Budget delivers a suite of practical measures designed to provide immediate relief, improve access to essential services, and invest in housing, healthcare, and education.

 So what does it all mean for everyday Australians?  Here’s a breakdown of the key announcements.

Tax Cuts for All Taxpayers

 The Budget delivers additional tax relief for every Australian taxpayer, building on the cuts introduced in July 2024.

·        From 1 July 2026, the 16% tax rate (on income between $18,201 and $45,000) will reduce to 15%.

·        From 1 July 2027, it will reduce again to 14%.

By 2027–28, the average combined tax cut across all taxpayers is expected to be $2,548 per year, or about $50 per week. To support lower-income Australians, the Medicare Levy low-income thresholds have also been increased—ensuring more individuals remain exempt from the levy or pay a reduced rate.

More Energy Bill Relief

 With energy prices continuing to strain household budgets, the Government has announced a further $150 rebate for all households and eligible small businesses.  This will be delivered automatically in two quarterly instalments and adds to the $300 in energy relief already announced in last year’s Budget.

Cheaper Medicines

 From January 2026, the maximum cost of PBS medicines for general patients will fall from $31.60 to $25 per script—the lowest price in 20 years.  For concession card holders, the co-payment will remain frozen at $7.70 until 2030.  An additional $1.8 billion has been committed to listing new and affordable medications, including treatments for endometriosis, menopause, cancer, and depression.

Student Debt Relief

 In a major move for current and former students, the Government will wipe 20% off all outstanding HELP and student loan balances—delivering $16 billion in debt relief to over 3 million Australians. From 2025–26, the repayment threshold will rise to $67,000, and a new marginal repayment system will reduce annual repayments for those earning less than around $180,000—making the system fairer and more affordable.

Making Healthcare More Affordable

 The 2025–26 Budget includes the largest investment in Medicare in history, with $7.9 billion committed to improving healthcare access and affordability.

 Key measures include:

 ·        Funding to boost the number of bulk-billed GP visits, with a target of 90% bulk billing by 2030.

 ·        Establishing 29 new Medicare Urgent Care Clinics to ease pressure on hospital emergency departments.

 An additional $793 million has been allocated to women’s health, improving access to contraception, menopause treatment, and pelvic pain clinics. Further funding will expand hospital services and GP training programs, particularly in regional areas.

Housing Support for First Home Buyers and Renters

 With housing affordability remaining a national concern, the Budget includes new measures to support both homebuyers and renters. The Help to Buy scheme will be expanded, allowing more eligible Australians to enter the property market with lower deposits and smaller mortgages. Renters will also benefit from a 45% increase in Commonwealth Rent Assistance (compared to 2022 levels) and new national standards to improve renters’ rights—including limits on rent increases and stronger eviction protections.

Investing in Education – From Early Years to University

 The Government is continuing its investment in lifelong education, with reforms spanning early childhood through to tertiary studies. Early Childhood Education: A new 3 Day Guarantee will ensure all families are eligible for at least three days of subsidised care each week. 

Free TAFE: The Budget makes 100,000 fee-free TAFE places permanent from 2027, helping Australians train for secure jobs in priority sectors.

University Support: A further $2.5 billion will expand university access—especially for students from disadvantaged and underrepresented backgrounds.

A Quick Note on Legislation

 Many of the measures announced in the Budget are proposals and may require legislation to pass before they take effect. Be sure to watch for confirmed start dates and eligibility criteria as more details become available.

 What Does It Mean for You?

Whether it’s understanding how much tax you’ll save, how the HELP debt cut affects your repayments, or whether you qualify for the Help to Buy scheme—a financial adviser or accountant can help you make sense of the changes and tailor a plan that suits your circumstances.

 The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional.  We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.