In this year’s Federal Budget, the Australian government has unveiled significant cost-of-living relief measures, aiming to support citizens well into the future. Treasurer Jim Chalmers’ budget outlines economic predictions extending to 2028, suggesting that upcoming policies will positively influence various sectors.
Among the initiatives planned are modest tax reductions, student debt alleviation, wage increases, healthcare support, and boosts to housing. Specifically, every Australian taxpayer is set to receive a tax cut, with an anticipated average annual saving of approximately AUD 2,548 by July 1, 2027, based on earnings of AUD 79,000. This means that by 2028, individuals can expect significantly improved take-home pay.
The housing strategy includes a bold target of constructing 1.2 million new homes over the next five years, thus enhancing affordability and ensuring better rights for renters. A new Help to Buy scheme will facilitate more first-home purchases, while a temporary ban on foreign buyers acquiring established homes aims to make properties more accessible for Australians.
In efforts to bolster competition in the supermarket sector, the government is investing AUD 38.8 million to address unfair practices and is keen to facilitate the establishment of new supermarket ventures. This should lead to better prices for consumers, particularly in remote First Nations communities.
Education is another focus, with plans to reduce student debt by 20%, considerably decreasing the burden for many borrowers. The introduction of 100,000 free TAFE places annually from 2027 is projected to allow an additional 200,000 students to pursue their education without financial strain.
Wage growth is also forecasted to rise steadily until 2028, benefiting from stronger labour market conditions and inflationary easing. The government anticipates that the banning of non-compete clauses for certain workers will further enhance earnings potential. Substantial wage increases will be directed towards aged care and early childhood education sectors, addressing critical workforce needs.
Moreover, the government aims to tackle the shortage of GPs, with salary incentives expected to boost training for over 2,000 new junior doctors each year by 2028. This is part of a wider commitment to improving healthcare accessibility, with an increase in bulk billing appointments.
Despite a slight uptick in unemployment to 4.1%, the budget projects stability, with a gradual rise expected to peak at 4.25% by 2028, indicating resilience in the job market.
Overall, the 2025 Federal Budget introduces a comprehensive approach to improving living standards, enhancing education, and ensuring fair access to essential services, all while laying the groundwork for significant economic benefits by 2028.