On Tuesday 25 March, Labor handed down its fourth Budget. The announcements were concentrated around providing support to ease the cost of living. Below are some of the key items from the Budget and how these might apply to you if they become law.

Cost of living relief Energy bill relief extension
The Government has announced the extension of energy bill relief for eligible Australian households and small businesses until 31 December 2025. This measure, which provides $150 in relief paid as $75 over two quarters, aims to alleviate the cost-of-living pressures.

Additional funding for medicines
From 1 January 2026, it’s proposed the Pharmaceutical Benefits Scheme (PBS) general patient co-payment will be reduced from $31.60 to $25.00, with concession card holders continuing to pay $7.70 for PBS-listed medicines.

Tax cuts
The Government proposed the introduction of new personal income tax cuts from 1 July 2026. The tax rate for taxable income between $18,201 and $45,000 will be reduced from 16% to 15%, and further to 14% from 1 July 2027. This will result in tax cuts of up to $268 in 2026-27 and up to $536 in 2027-28.

Healthcare support
Significant additional funding will be provided over five years to increase access to bulk billing and expand the Medicare Urgent Care Clinics Program. This includes the establishment of 50 new Medicare Urgent Care Clinics across Australia, bringing the total to 137. Additionally, the Medicare levy low-income thresholds will be increased from 1 July 2024, ensuring low-income individuals remain exempt from paying the levy or pay a reduced rate.

Small business support
The Government has announced proposed measures to support small businesses and protect them from unfair trading practices. This includes funding for the Australian Competition and Consumer Commission to strengthen regulatory oversight of the Franchising Code of Conduct and for the Australian Securities and Investments Commission to improve data analytics capabilities.

Help to Buy program
The Government proposed to increase funding for the Help to Buy program by $800 million, so more first-time home buyers can purchase a property. This includes increasing property price caps and income caps from $90,000 to $100,000 for singles and from $120,000 to $160,000 for joint applications.

Cutting student debt
Outstanding Higher Education Loan Program (HELP) and other student debts are proposed to be reduced by 20 per cent from 1 June 2025. In addition, from 1 July 2025 the Government has proposed to increase the amount that people can earn before they are required to start paying back their loans from $54,435 in 2024–25 to $67,000 in 2025–26. On top of this, compulsory repayments will be lower for people earning under around $180,000 and above the current minimum threshold.

Important Infromation
Information in this document is provided by Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL). It may include general advice but does not consider your individual objectives, financial situation, needs or tax circumstances.