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Australia’s 2025 federal budget, presented by Treasurer Jim Chalmers, delivers a cost-of-living package featuring tax cuts, energy bill relief, and Medicare reforms. These measures aim to ease financial pressures ahead of the upcoming election.
Key Budget Measures:
🔹 Tax Cuts – The tax rate for incomes between $18,201-$45,000 will drop to 15% in 2026 and 14% in 2027, saving taxpayers up to $536 annually. Combined with prior tax changes, an average worker ($79,000 salary) will save $2,190 per year by 2027.
🔹 Medicare Levy Threshold Increase – More Australians will avoid the Medicare levy, with the income threshold rising 4.7% to $27,222 for singles and $45,907 for families.
🔹 Energy Bill Relief – All households and 1 million small businesses will receive an extra $150 in power bill rebates in late 2025, following the $300 credits set to expire in June.
🔹 Cheaper Medicines & Bulk Billing – From January 2026, the maximum price for PBS medicines will drop from $31.60 to $25, while an $8.5 billion boost to Medicare aims to make 90% of GP visits free by 2030.
🔹 Childcare & Student Debt – While not included in this budget’s new spending, Labor’s $426 million childcare subsidy and 20% HECS-HELP debt reduction remain key policies.
With inflation expected to ease to 2.5% by mid-2025, the government says delaying tax cuts prevents inflationary pressure while providing relief to households.
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