March 27, 2025
We’ve prepared a short summary so you can quickly catch up on the key changes around personal income tax, super, and other measures. It also has some commentary from our experts for you to pass off as your own when chatting to family, friends or colleagues.
Australia’s 2025–26 Federal Budget aims to help with the cost of living, strengthen Medicare, invest in housing supply, support education, and build a stronger, more productive economy. While the economy remains exposed to global volatility, Australia is better positioned than many nations:
- Underlying Cash Balance: Projected deficit of $42.1 billion in 2025–26 (-1.5% of GDP).
- Gross Debt: Forecast to reach $1,02 trillion (about 35.5% of GDP).
- Economic Growth: Real GDP is projected to pick up from 1.5% in 2024–25 to 2.25% in 2025–26.
- Inflation: Moderated significantly; headline inflation returned to the RBA’s target band in the second half of 2024, with 2.5% expected across 2024–25.
- Unemployment: Remains low and is now expected to peak at 4.25%, which is lower than previous estimates.
Overall, the proposed measures appear incremental rather than transformative, with the Budget’s main themes focused on household support, stable healthcare funding, and selective industry boosts. While the overall deficit is projected to increase, it remains comparatively moderate on the global stage, and near-term economic conditions will continue to hinge on broader global developments.
You can read more, including expert commentary below.
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