Treasurer Jim Chalmers has handed down his 2025 Federal Budget, with major implications for Australians across various sectors.
With the federal election just around the corner, the budget has brought forward tax cuts, new spending, and difficult choices.
Here’s everything you should know about the federal budget:
Winners:
- Taxpayers: The government has announced $17.1 billion in tax cuts, including reductions for those earning between $18,201 and $45,000, providing much-needed relief to millions of Australians.
- First Home Buyers: The expanded ‘Help to Buy’ scheme now includes higher income and property price caps, making it easier for first home buyers to get onto the property ladder.
- Women’s Health: A significant boost of $573 million has been allocated to Medicare rebates on long-term contraceptives and birth control implants.
- Beer Brewers: In a move to boost the hospitality sector, the government has frozen the tap beer excise for two years, which could lower the price of a pint by five cents.
- Giant Panda: The government has committed additional funding for the care of Adelaide Zoo’s Giant Pandas Xing Qiu and Yi Lan.
Losers
- Illegal Tobacco Industry: The federal government has failed the fight against the illegal tobacco industry, with the revenue still causing billions of dollars every year.
- Traides: The boosted instant asset write-off, which has been a game-changer for tradies, will end in July. The tax break allowing businesses to claim an immediate $20,000 deduction on new work vehicles will fall back to just $1,000.
- Temporary Migrants: Treasury forecasts a significant drop in overseas migration, with numbers set to fall by 75,000 in the next financial year. International students, a large part of this group, will also face tighter restrictions.
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