Australian Federal Budget 2025-26: Australia’s 2025-26 Budget: Tax cuts, student debt relief and housing — All you need to know

Australian government has unveiled its 2025-26 federal budget, focusing on it Cost relief reliefTax cuts, and support for homes, students and businesses.
With a general election, Australia treasurer Jim Chalmers, while addressing the major economic challenges, introduced several measures aimed at reducing financial pressure on the Australians, including Bloomberg, including slowing down the strength and economic growth of the housing.
Tax deduction
One of the most important highlights is the expansion of tax deduction, which will reduce the tax rate for earning between $ 18,201 and $ 45,000 and 14% by July 2027.
According to Bloomberg, these cuts will resulting in average tax of $ 2,548 by an average tax by 2027–28 financial year.
Domestic benefits
With a cut of $ 150 from its electricity bills in quarterly installments starting in July, homes and small businesses will also get automatic energy bill relief.
This initiative is part of a broad package of $ 1.8 billion to help Australians deal with the rising cost of electricity, Sydney Morning Herald.
Health care
The government has promised an investment of $ 8.5 billion in Medicare, which has expanded bulk-bed health services for patients to reduce out-of-pocket expenses.
Additionally, $ 689 million has been allocated to reduce the cost of drugs under the drug gain scheme, with the maximum cost of many drugs falling from $ 31.60 to $ 25.
Student loan relief
Student loan relief is another major policy announcement, in which the government plans to erase 20% of the student loans, which benefited more than three million Australians.
According to Sydney Morning Herald, the revised repayment combined with threshold, will be average of $ 5,400 per student from outstanding loans, an amount of $ 19 billion in total debt relief, according to The Sydney Morning Herald.
Accommodation
Housing strength is an important issue, yet the budget only provides limited solutions. The government announced an investment of $ 54 million in modular and prefabricated domestic construction to speed up development.
Help to purchase a shared equity scheme has also been expanded from $ 5.5 billion to $ 6.3 billion, making more Australians enter the housing market with less deposits.
Infrastructure development
For infrastructure, major investments include $ 7.2 billion for the Bruce Highway of Queensland, $ 1 billion for Sydney’s Southewst Rail Link and $ 1 billion for upgrade at Melbourne airport.
Challenges and criticism
Despite these initiatives, the budget is estimated to return to a decrease of $ 27.6 billion in 2024–25, deepening to $ 42.1 billion in 2025–26. While the economic growth is expected to improve slightly, inflation remains an important concern, carefully monitoring public spending with the Reserve Bank of Australia.
Defense spending has also attracted attention, there is no major new commitment beyond the slow growth of GDP up to 2.3% in the early 2030s.
It decreases with the target of 3% defense spending encouraged by US President Donald Trump, which is potentially stressing Australia’s relations with the United States according to Bloomberg.
With the upcoming election, the Albani government is balanced with long -term financial stability and balanced economic relief measures.
While tax deduction, student debt relief, and funding of healthcare are welcomed, concerns over housing, fiscal discipline and defense spending may shape voter spirit in the coming months.