The unexpected Budget
The Government had hoped they would not need to deliver a Budget before the Federal Election, as they expected to be in caretaker mode. However, Cyclone Alfred interrupted those plans.

So, the Budget was presented on 25 March 2025. Overall, it was a very quiet affair; however, it did introduce several important changes that will impact many aspects of our lives. Here are some key points you need to know about income tax, childcare, aged care, families, health, and superannuation.

Income Tax
The Government has announced tax cuts for all Australian taxpayers. Starting from July 1, 2026, the tax rate for incomes between $18,201 and $45,000 will be reduced from 16% to 15%. This rate will drop further to 14% in 2027. These changes mean that if you earn $45,000 a year, you will save $536 per annum in tax from 1 July 2027. Overall, these tax cuts aim to provide some relief from the rising cost of living.

Childcare
The budget includes significant investments in childcare. From January 1, 2026, every family will be eligible for at least three days of subsidised childcare per week, regardless of how much they work or study. This change is expected to benefit over 100,000 families, making childcare more affordable and accessible. Additionally, $1 billion will be invested to increase the number of childcare places, especially in areas that need them the most.

Aged Care
Aged care is another focus of the budget. The Government has allocated $2.6 billion to increase the wages of aged care workers. This pay rise aims to ensure that those who care for our elderly are properly compensated. This investment is part of the government's efforts to provide better care for our aging population.

Energy
Each household will receive two $75 rebates off their quarterly energy bills, which will be extended until the end of 2025. These measures are designed to ease financial pressures on families and ensure they have more disposable income.

Health
The budget includes a record investment of $7.9 billion to expand bulk billing, making it cheaper and easier to see a doctor. This means more people will be able to visit their GP for free. The government is also funding 50 new Medicare Urgent Care Clinics across the country to provide immediate medical attention without the need for an appointment. Additionally, $1.8 billion will be allocated to public hospitals to reduce waiting times and improve services.

Superannuation
Superannuation has not been overlooked. The Government plans to invest $404.1 million over four years to support the implementation of payday super reforms, which will start on July 1, 2026. These reforms aim to ensure that superannuation contributions are paid more frequently, helping workers to grow their retirement savings more effectively.

Conclusion
The 2025 Australian Federal Budget brings several changes aimed at improving the lives of Australians. From tax cuts and childcare subsidies to investments in aged care and health, these measures are designed to provide financial relief and support to families, workers, and the elderly. By focusing on these key areas, the government hopes to create a fairer and more prosperous future for all Australians.