What the 2025–26 Federal Budget Means for You
Disclaimer: This is a small summary created from the official Federal Budget for our Strategem client’s ease and accessibility. For a full comprehensive look at the Federal Budget, please refer to www.budget.gov.au.
Overview:
Helping Australians now and shaping the future
The 2025–26 Federal Budget focuses on easing cost-of-living pressures while investing in long-term economic resilience. Against a backdrop of global uncertainty, the Australian Government has delivered back-to-back surpluses for the first time in nearly two decades—providing some financial stability while introducing a range of new initiatives aimed at improving everyday life for individuals, families, and business owners.
Growth is stabilising, inflation is easing, and interest rates have begun to fall. But many Australians are still feeling the pinch, and this year’s Budget aims to strike a balance—offering support today while investing in a stronger, fairer economy for tomorrow.
The Government has committed to:
Helping with the cost of living
Strengthening Medicare and the health system
Making it easier to buy and rent a home
Investing in all stages of education
Building a stronger economy and creating future-focused jobs
Key Budget Initiatives at a Glance
✔️ Cost of Living Support
New tax cuts for every Australian taxpayer
$1.8 billion extension of energy bill relief
Ban on most non-compete clauses and increased wages for aged care nurses
PBS scripts capped at $25 and $1.8 billion for new/affordable medications
20% reduction in student debt and a fairer repayment system
✔️ Health & Medicare
$79 billion to make 9 out of 10 GP visits bulk billed by 2030
$1.8 billion boost to public hospitals
50 new Medicare Urgent Care Clinics (total of 137 nationwide)
$792.9 million for improved healthcare access for women
Expansion of the healthcare workforce
✔️ Housing & Property
More home builds using modern methods
Expansion of Help to Buy program
Ban on foreign buyers purchasing existing dwellings for 2 years
Up to $10,000 incentives for apprentices in housing construction
✔️ Education
$5 billion investment in a universal early childhood education system
Subsidised early learning (minimum 3 days per week)
Fairer funding for public schools
Permanent free TAFE and university reforms
✔️ Jobs, Growth & Industry
Investment in a “Future Made in Australia”
$3 billion to support clean energy and green metals
$2 billion expansion of the Clean Energy Finance Corporation
Reform of National Competition Policy for a more productive economy
✔️ Inclusion & Equality
$4 billion towards gender-based violence prevention and equality programs
$843 million in support for remote First Nations communities
$423 million in disability support services
Next, we’ll break this down into key insights for:
Individuals & Families
Property Investors
Business Owners
Retirees & Aged Care
Young Professionals & Students
Whether you're a client of Strategem or part of the wider community, this guide is designed to help you better understand how this Budget impacts your world.
What the Budget Means for Families
The 2025–26 Budget places a strong emphasis on supporting families, especially through cost-of-living relief, healthcare access, and education.
Key highlights:
Tax Cuts for Every Australian Taxpayer The government will deliver further personal income tax cuts for all Australians. From 1 July 2026, the 16% tax rate (on incomes between $18,201 and $45,000) will drop to 15%, and in 2027 it will reduce again to 14%. Combined with Stage 3 tax cuts from 2024-25, a person earning the average wage of $79,000 will save a total of $2,190 in tax annually by 2027-28.
Energy Bill Relief Households will receive two more quarterly payments of $75 (totalling $150) off their electricity bills through to 31 December 2025. This aims to ease ongoing cost-of-living pressures, alongside broader market reforms to improve energy pricing.
Cutting Student Debt & Changing Repayment A proposed 20% reduction in all HELP and student loan balances has been announced, alongside a fairer repayment system and an increased minimum repayment threshold. This could deliver meaningful relief for millions of Australians with student debt.
Cheaper Medicines & Strengthening Medicare From January 2026, the maximum cost of PBS medicines will reduce to $25 for general patients and remain frozen at $7.70 for concession holders. The government has also committed $7.9 billion to strengthen Medicare, with more bulk-billed GP visits and urgent care clinics, plus enhanced women’s healthcare services.
How this could help families:
Increased disposable income through tax relief
Reduced pressure on household budgets with lower energy and healthcare costs
Improved access to early learning and better pathways through education
Stronger Medicare and urgent care facilities nationwide
What the Budget Means for Property Owners and Investors
Whether you're buying, selling, or holding, this budget has implications for property-related decisions.
Key highlights:
Help to Buy Scheme Expanded The shared equity scheme will allow eligible buyers to access home ownership with a smaller deposit and increased income/property price caps. This may appeal to first-time buyers or families looking to enter the market.
Ban on Foreign Buyers for Two Years Foreign investors will be temporarily restricted from purchasing existing residential properties, which may ease housing competition and stabilise prices for Australian buyers.
Support for New Housing Construction Over $33 billion has been allocated to speed up the construction of new homes. Investors in the property development space may benefit from this policy via government-backed demand and incentives.
Apprenticeship Funding for Housing Sector With up to $10,000 available for eligible apprentices in housing-related trades, the skilled labour force is expected to grow—benefiting builders, developers, and investors alike.
How this could help property owners and investors:
Slower foreign demand may ease property market pressures
More support for new builds and first homebuyers could stimulate demand
Property investors may need to assess energy upgrades and compliance incentives
What the Budget Means for Business Owners
From small business to large enterprise, this Budget continues the government’s push for a stronger and more resilient economy.
Key highlights:
Energy Support & Economic Outlook Small businesses will benefit from the same $150 energy bill relief as households. While global economic conditions remain uncertain, domestic inflation is moderating and private demand is picking up, supporting business confidence.
ATO Compliance Funding & Tax Integrity The ATO will receive nearly $1 billion to expand compliance enforcement. This includes increased focus on the shadow economy, large taxpayers, and wealthy groups. Business owners should ensure they remain compliant, as audit activity is expected to rise.
Support for Apprenticeships and Skills New investments will boost the construction workforce, with apprentices in eligible trades receiving up to $10,000. Free TAFE has also been made permanent, expanding access to skilled training.
Support for manufacturing and a “Future Made in Australia”
Banning non-compete clauses to improve workforce mobility
Tax relief for all taxpayers, which includes sole traders
How this could help businesses:
More opportunity to access clean energy investment and funding
Lower energy and employment-related costs
Greater flexibility in hiring and talent mobility
Indirect support through stronger household spending power
What the Budget Means for Retirees and Aged Care
This year’s Budget continues to focus on dignity in ageing and healthcare access.
Key highlights:
Increased Medicare Levy Thresholds From 1 July 2024, the Medicare levy low-income thresholds have increased for seniors and pensioners. For example, the single pensioner threshold has risen from $41,089 to $43,020, reducing potential Medicare levy liabilities and allowing more retirees to retain income in their later years.
Strengthening Medicare Access The government has committed $7.9 billion to Medicare, including making 9 out of 10 GP visits bulk billed by 2030. This means more affordable healthcare access for retirees and older Australians.
Expanded Women’s Health Services $792.9 million will be invested in delivering lower-cost, more accessible healthcare for women, which could support older women who are navigating health concerns in later life.
Increased Aged Care Workforce Support Additional funding for aged care nurses and training could improve the quality and availability of care for those entering or currently within the aged care system.
How this could help retirees:
Better care standards in aged care
More affordable medication
Stronger support services for those with disabilities or complex needs
What the Budget Means for Students and Young Adults
With growing pressure on affordability and future employment, the Budget introduces reforms to support younger Australians.
Key highlights:
20% Reduction in Student Debt A one-off cut of 20% to existing HELP (and other student loan) balances will be delivered, alongside changes to the repayment system. This could relieve some financial pressure on graduates and reduce long-term debt.
Increased Minimum Repayment Threshold The government is proposing a higher income threshold before repayments are required, allowing more flexibility and easing early-career financial stress.
Expanded Access to TAFE and University Permanent free TAFE, new reforms to university funding, and $5 billion towards universal early childhood education support access to further education and upskilling.
PBS Medicines Reduced Reductions in PBS medicine costs could benefit young adults managing chronic health conditions, especially as they transition off family healthcare plans.
How this could help younger Australians:
Reduced cost of study
More accessible pathways into employment
Less long-term financial pressure from student loans
At Strategem, we’re here to help you make sense of what these changes could mean for you.
Whether you're a family navigating new tax cuts, a business owner assessing your compliance needs, or a retiree seeking greater peace of mind—this is the perfect time to review your strategy, ask questions, and make informed decisions.
Need clarity on what the Budget means for your circumstances?
Book a chat with one of our advisors and let’s plan your next move together.
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