The federal Treasurer has just delivered the 2025 budget. It’s a budget he didn’t expect to give, we were supposed to be in the middle of an election campaign but Cyclone Alfred put paid to that. The election now has to be held in May.
The unexpected tax cut was a surprise. From July 1, 2026, the 16 per cent tax rate — which applies to taxable income between $18,201 and $45,000 — will be reduced to 15 per cent.
From July 1, 2027, that rate will drop again to 14 per cent.
The energy rebate has also been extended to December 31, 2025, giving households an extra $150 off their energy bill this year.
The Medicare levy low-income threshold will be increased for singles, families, seniors and pensioners the federal government also announced it would spend $8.5 billion to lift bulk-billing rates ie free doctor visits. The maximum cost of medicines on the Pharmaceutical Benefits Scheme (PBS) will be lowered from $31.60 to $25 per script. For pensioners, the maximum co-payment will remain frozen at $7.70.
All outstanding Higher Education Loan Program (HELP) and other student debts will be reduced by 20 per cent
Real wages will increase, inflation will remain within the Reserve Bank’s ideal range. After two years of surplus the budget will go into deficit for a few years.
The economy is in good shape the rate of increase of GDP will go from 1.5% to 2,5%.
What do you think? Good or bad?