2025 Budget: Tax cuts, benefits, and key impacts

2025 Federal Budget: Winners include taxpayers, students; Losers are small businesses and welfare recipients amid election focus.

In Short

The 2025 Federal Budget includes tax cuts for individuals and support for low-income earners, a $450 energy rebate, and reductions in student loans for graduates.

However, small businesses may struggle with removed tax benefits, and welfare rates remain the same, highlighting the government’s mixed priorities before the election.

The Federal Budget for 2025 reveals significant changes for the economy, emphasising pre-election commitments from the Labor government.

Taxpayers will receive modest tax cuts, resulting in approximately $5.15 extra weekly for those earning around $79,000. Low-income earners will also benefit from decreased tax rates over the next few years.

An extended $300 energy rebate, now totaling $450, aims to assist households through 2025.

University graduates will see 20% of their student loans erased, alongside raised income thresholds for compulsory repayments. The free TAFE program will continue, offering 100,000 places annually from 2027.

Construction workers

Apprentices in construction and related fields will receive $10,000 upon completion of their training. The budget includes measures to boost bulk-billing GP appointments, aiming to offer 90% of visits at no cost.

The Pharmaceutical Benefits Scheme will introduce caps on medicine costs and include new medications, further aiding cost relief for Australians.

Funding will also support healthcare staff and build additional Medicare urgent clinics.

Families will benefit from subsidised childcare, with funds allocated to expand services.

Asset write-off

However, small businesses may feel the impact of the eliminated instant asset write-off.

Welfare rates remain unchanged, disappointing advocates for higher support.

Additionally, Labor plans to phase out live sheep exports by 2028, aiming to ensure a smooth transition for the industry.

Overall, the budget presents an array of winners and losers, reflecting the government’s priorities ahead of the upcoming election.