Tax cuts, energy rebates, and cheaper medicine are just some of the measures announced in the 2025-2026 budget. Let's take a closer look at some of the proposals that could affect your hip pocket, as well as who stands to benefit or lose out. 

Keep in mind that legislation will need to be passed for the proposed changes to become reality.  For most of the measures outlined below, this likely won't happen before the election. However, there could be one exception. At the time of writing, the tax cuts bill had already passed through the lower house and was with the Senate, even though the Coalition indicated it wouldn't support the tax cuts.

The winners

Taxpayers

In what was one of the few surprises of the budget, Treasurer Jim Chalmers announced a new round of tax cuts. If the changes go ahead, from 1 July 2026, the tax rate for earnings between $18,201 and $45,000 will drop from 16% to 15%. It will be further reduced to 14% starting 1 July 2027.

This will mean a saving of $268 in 2026-27, and $536 per year from 2027-28 for someone earning the average Australian wage. This works out to around $5 a week in the first year and $10 a week in the second.

Households and businesses with energy bills

The energy rebate featured in last year's budget has been extended. Every household and around one million small businesses will save $150 on their energy bills by the end of the year. The discount will be in the form of two $75 rebates directly off their electricity bills between 1 July and 31 December 2025.  

Aussies with student debt

Aussies with student debt will have their outstanding loan balance slashed by 20% before indexation is applied on 1 June 2025. This means that a university graduate with an average debt of $27,600 would have $5,520 wiped off their loan.

The salary threshold for compulsory student loan repayments will increase from $54,435 to $67,000, meaning people can earn more before they have to start paying, and compulsory repayment rates will be lowered.

Aged care and childcare workers

Aged care nurses and childcare workers are set to get a pay rise. The government plans to spend $2.6 billion to increase award wages of aged care nurses and $3.6 billion to fund a wage increase for the early childhood education and care workforce.

Employees switching jobs

Non-compete clauses for workers earning less than $175,000 will be banned. The move is designed to make it easier for workers to move to more productive, higher-paying jobs or start their own businesses. It's estimated that the reforms could lift wages of affected workers by up to 4% or $2,500 per year. 

First home buyers

The property price and income caps for the Help to Buy scheme, which lets Aussies to buy a home with the government through a shared equity deal, will increase. This means more first-home buyers will be able to apply - but spots are limited to 10,000 a year for the next four years.

The income limits will rise from $90,000 to $100,000 for individuals and from $120,000 to $160,000 for joint applicants and single parents.

The price caps are linked to the average house price in each state and territory.

Aussies who take prescription medication

From 1 January 2026, the maximum price of medicines on the Pharmaceutical Benefits Scheme (PBS) will drop from $31.60 to $25.00 per script. For those with a concession card, the cost will remain at $7.70.

People who need healthcare

It should become easier for Aussies to see a GP for free. The government will spend around $8 billion to make nine out of 10 GP visits bulk-billed by 2030.

The losers

Welfare recipients

Despite calls from advocacy bodies to increase Jobseeker, rent assistance and other welfare payments, the budget didn't give these a look-in.

Foreign home buyers

From 1 April 2025, foreign buyers (including temporary residents and foreign‑owned companies) will be banned from purchasing existing dwellings for two years.