2025-2026 Budget Summary

The Australian Government’s 2025–26 Budget introduces measures to alleviate cost-of-living pressures, enhance housing affordability, address labor shortage and improve health care.

Some of the measures include:

• Tax cuts will reduce the rate for incomes between $18,201 and $45,000 from 16% to 15% in 2026, and to 14% in 2027, aiming to boost household disposable income by 1.9% by 2027–28.
• To support low-income individuals, the Government will increase the Medicare levy low‑income thresholds by 4.7% for singles, families, and seniors and pensioners from 1 July 2024, ensuring more than one million Australians on lower incomes remain exempt from paying the Medicare levy or continue to pay a reduced rate.
• Energy bill relief is extended to the end of 2025, providing two $75 rebates directly off electricity bills for every household and around one million small businesses.
• Housing initiatives feature an expansion of the Help to Buy program, with around $800 million committed to lift property price and income caps, enabling the government to provide an equity contribution of up to 40% for eligible home buyers, assisting approximately 40,000 households.
• Additionally, the government is investing in the construction workforce by doubling maximum incentive payments for apprentices in the housing construction sector, offering up to $10,000 to eligible apprentices, and providing up to $5,000 to employers through a Priority Hiring Incentive.
• Further housing measures include increasing Commonwealth Rent Assistance by 45% for around one million households and implementing ‘A Better Deal for Renters’ to strengthen renters’ rights nationwide.
• Healthcare improvements include a record $7.9 billion investment in Medicare to enhance bulk billing for free GP visits, and a reduction in the Pharmaceutical Benefits Scheme general patient co-payment from $31.60 to $25.00 starting January 2026.
• Education measures involve cutting student loan debt for three million Australians by a combined $19 billion and investing in every stage of education, from early childhood to permanent free TAFE.

For more details please click the link below
https://budget.gov.au/content/03-housing.htm