Federal Budget 2025: The short, sharp and – sort of – sweet version

The federal budget is always a massive, jargon-filled beast, but don’t worry – we’ve got your back. Here’s a quick and easy rundown of the key numbers, economic forecasts and big-ticket promises (without making your head spin). Whether it’s tax cuts, energy bill relief, or debt figures that sound like someone’s phone number, this summary gives you the essentials in plain English.

THE BIG PICTURE: WHERE THE MONEY’S GOING (AND COMING FROM)

Economic Growth: The economy is expected to grow by 1.5% in 2024-25, which isn’t exactly fireworks but at least it’s moving in the right direction.

Unemployment Rate: The jobless rate is set to rise to 4.25%, meaning more people might be dusting off their résumés.

Inflation: The cost of living squeeze is easing slightly, with inflation forecast to drop to 2.5%, finally giving our wallets a breather.

Wages Growth: Paychecks are expected to grow by 3%, so while you won’t be rolling in cash, you might afford an extra coffee per week.

Living Standards: Household disposable income is expected to rise a bit faster than planned, so that’s a small win for the grocery bill.

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Migration: Net overseas migration is slowing down, dropping from 435,000 in 2023-24 to 225,000 by 2026-27, as the government tweaks immigration settings.

The Big One: Budget Deficit: The country will be $27.6 billion in the red this year, which sounds bad, but hey, it’s better than some past years.

Commonwealth Debt: The nation’s credit card balance will hit $940 billion in 2024-25 before cracking $1 trillion the year after, making it one of the biggest IOUs in Aussie history.

Net Debt: The government’s net debt will rise to $556 billion, proving once again that we’re all experts at spending more than we have.

WHAT’S IN IT FOR YOU (IF LABOR STAYS IN POWER)?

If Labor wins the next election, they’ve got a shopping list of goodies lined up. From tax cuts and cheaper meds to more affordable childcare and a crackdown on dodgy workplace contracts, here’s what they’re promising in order to make life a little easier (or at least a little less expensive).

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Tax Cuts: Everyone gets a tiny tax break worth about $10 a week, starting in July 2026 – not enough for a holiday, but maybe an extra beer, depending on where you buy your drinks.

Energy Bill Relief: Households and small businesses will get $150 off their power bills, because, let’s face it, electricity prices are still a killer.

Cheaper Medicines: Prescription drugs will be capped at $25 per script, meaning fewer nasty surprises at the pharmacy checkout.

Healthcare Boost: More bulk-billing, 50 new urgent care clinics, and extra funding for nurses and GPs, costing a whopping $9 billion over four years – great news if you hate long waits at the doctor.

Childcare Help: Families earning up to $500,000 (yes, you read that right) will get at least three days of subsidised childcare, costing $427 million over five years.

First Home Buyer Support: The Help to Buy scheme will get a boost, making it a bit easier for first-home buyers to get into the market (assuming they can still afford avocado toast).

Workplace Shake-Up: Banning non-compete clauses for low- and middle-income workers could boost wages by $2,500 a year – so no more weird contracts stopping you from getting a better job.

HECS Debt Slash: A 20% cut to student loan debt, wiping $16 billion from the books – a rare win for anyone still haunted by their HECS balance.

Disaster Recovery: $1.2 billion is going towards helping communities in southeast Queensland and northern NSW recover from ex-Tropical Cyclone Alfred – because Mother Nature isn’t playing nice.

Big Infrastructure Plans: Expect major upgrades like $7.2 billion for Queensland’s Bruce Highway, $2 billion for a new rail hub in Melbourne, and $1 billion for Sydney’s southwest rail corridor – so maybe, just maybe, your commute will be a little less torturous.

Defence Spending: A fast-tracked $1 billion investment in guided weapons, submarines and frigates, because apparently, we’re getting serious about military hardware.

And that’s the budget in a nutshell! More spending, some relief for households, and a debt number that’ll make your calculator cry.

Images: WikiCommons