Federal Budget 2025–26: What It Means for Your Finances

The 2025–26 Federal Budget has landed—and while many details were already on the table, Treasurer Jim Chalmers surprised us with a $17 billion tax cut package aimed at “rebuilding living standards.”

But what does this all mean for your financial future? At ActOn Wealth, we’ve broken down the key takeaways and how they could impact your household budget, investments, superannuation, and long-term wealth strategy.

1. Tax Cuts Are Coming (But Not Just Yet)

Starting 1 July 2026, and again in 2027, Aussies will benefit from a two-stage tax cut rollout. When fully implemented, the average earner will save around $536 per year—a welcome relief in a high-cost environment.

While these changes are still a couple of years away, they’re worth factoring into your long-term financial plan.

💡 AOW Tip: Now is the perfect time to reassess your cash flow strategy and take advantage of current offsets or deductions before these changes take effect.

2. A Renewed Push to Ease Cost of Living Pressures

This budget targets the hip pocket with a suite of support measures:

• $150 energy bill relief (extended to the end of 2025 for households and small businesses)
  
• Medicare levy low-income threshold increase from 1 July 2024
  
• $19 billion in student debt reductions, slashing outstanding HELP loans by 20%
  
• Crackdown on excessive card surcharges and increased competition in the supermarket sector
  

💡 AOW Tip: If you’re juggling household debt, now could be the time to restructure your finances. Let’s explore how we can help improve your monthly cash flow.

3. Medicare Boosts and Cheaper Medicines

Healthcare access is a central theme:

• Nearly $8 billion to expand bulk billing and fund more Urgent Care Clinics
  
• PBS prescription caps to fall to $25 per script for non-concession card holders
  
• An additional $1.8 billion to list new medicines on the PBS
  

This could mean fewer out-of-pocket costs—especially valuable for families, retirees, and those managing chronic health issues.

💡 AOW Tip: With lower health costs on the horizon, now’s a good time to review your personal insurance strategy to ensure it aligns with your overall protection plan.

4. Housing Affordability & Construction Gets a Lift

The government is committed to delivering 1.2 million new homes, with extra funding to speed up construction and remove red tape. There’s also:

• Up to $10,000 in incentives for new apprentices
  
• $800 million expansion of the Help to Buy scheme
  
• A ban on foreign buyers purchasing existing dwellings for 2 years from April 2025
  

💡 AOW Tip: First home buyer or investor? We can help you navigate the property market and lending strategies to capitalise on these government initiatives.

5. Disaster Resilience and Recovery Funding

Following Cyclone Alfred’s impact, the government is allocating $13.5 billion in disaster support, with $1.2 billion reserved for future emergency response.

This not only addresses immediate recovery but aims to safeguard Australia’s infrastructure and supply chains—key to long-term economic stability.

6. Investing in a Cleaner, Stronger Economy

The $22.7 billion Future Made in Australia initiative will:

• Accelerate clean energy investment
  
• Support hydrogen and green metals production
  
• Launch a $20 million Buy Australian campaign
  

This could open up opportunities in ethical and future-focused investments—a space more Australians are exploring.

💡 AOW Tip: Let’s review your investment portfolio to ensure it’s future-ready and aligned with your values and goals.

So, What Does This Mean for You?

The Federal Budget signals cautious optimism. While global challenges remain, Australia is holding steady—with falling inflation, resilient job markets, and supportive government measures.

Now is a smart time to take stock of your own financial position, assess upcoming changes, and ensure you’re on track for a more secure and prosperous future.

✅ Book your complimentary consultation today
Let’s unpack what these changes mean for your wealth strategy, investment goals, superannuation, and financial peace of mind.

Disclaimer: The information in this article is based on the 2025–26 Federal Budget and may be subject to change. We recommend seeking personalised financial advice before acting on this information.