As Treasurer Jim Chalmers puts the final touches on the 2025 federal budget, it’s clear that the government has one thing on its mind: cost of living.
Pre-budget teasers have revealed what matters most for the government ahead of Tuesday’s budget, and that’s helping households deal with rising costs of living.
It’s the final budget ahead of the next election, which Prime Minister Anthony Albanese is sure to call in the following days.
The government has already revealed that this budget will be a deficit, ending its run of surpluses in what some fear will tarnish its economic credentials.
While voters can expect some election sweeteners in the budget, Dr Chalmers will be under pressure to avoid spending too much and mindful of what they spend money on.
Just like last year, the treasurer will want to balance its spending plans with the need to keep inflation under control, so that the Reserve Bank can cut interest rates further.
Here are the key budget measures that we know so far.
Housing will receive more than $850 million in this year’s budget to help first-home buyers and boost home building.
The government will invest $800 million into its Help to Buy shared equity scheme to expand the program, now set to cost $6.3 billion.
The extra funding will increase the income caps from $90,000 to $100,000 for individuals and from $120,000 to $160,000 for joint applicants and single parents. It will also boost the property price caps to give first-home buyers more choice.
The scheme, which will open for applications later this year, has been designed to help first-home buyers save for a home deposit faster and get onto the property ladder sooner.
To boost home building, the Albanese government will give $49.3 million to state and territory governments to invest in local programs across the country that grow the prefabricated and modular housing industry.
There is also $4.7 million going towards creating a voluntary national certification process for offsite construction to streamline approvals.
Making a house in a factory instead of onsite could cut construction time in half, which would deliver more homes sooner, according to government estimates.
The Albanese government has spent about $33 billion on housing since coming to power in 2022.
Cost of living will be at the centre of the 2025 budget, with Aussies set to receive support on energy bills, healthcare and more.
Households are set to save $150 on their energy bills through to the end of 2025, as part of a $1.8 billion energy rebate pledge.
It’s an extension of last year’s energy bill relief package which gave households a $300 rebate over the financial year amid rising power bills.
On healthcare, the government has committed $8.5 billion to increase the number of bulk-billed GP visits available to Australians through bulk-billing incentives for GPs.
It will spend $689 million to cut the cost of all medicine listed on the Pharmaceutical Benefits Scheme to $25.
To boost health services, the government has announced $644 million to open an extra 50 Medicare urgent care clinics and the government is expected to announce more than $570 million for a women’s health package aimed at reproductive health and menopause.
The budget will splash some cash on infrastructure projects across the country as well.
Among the bigger infrastructure promises is $7.2 billion for an upgrade to the Bruce Highway in a win for Queensland drivers.
In Victoria, it has promised an extra $2 billion towards building the Melbourne airport train, taking its total commitment to the long-delayed project to $7 billion.
The budget is also set to provide $1 billion to cover the cost of future rail corridors linking western Sydney to the Macarthur region.
