The 2025-26 federal budget has been unveiled by Treasurer Jim Chalmers tonight.
Among the budget measures announced include a new round of tax cuts in 2026-27 and 2027-28. These cuts will reduce the tax rate on income between $18,201 and $45,000 from 16 per cent to 15 per cent, and then to 14 per cent, over a two-year period.
In addition, the Government will increase the Medicare levy low-income thresholds by 4.7 per cent from 2024–25.
The changes to the personal income tax system will cost $17.1 billion over the forward estimates.
The increase to the Medicare levy low‑income thresholds will cost $648 million over the forward estimates.
After two years of surplus, the 2024-25 budget is forecast to record a deficit of $27.6 billion, followed by another deficit of $42.1 billion in 2025-26.
Budget papers
Budget Paper No. 1: Budget Strategy and Outlook
Budget Paper No. 2: Budget Measures
Budget Paper No. 3: Federal Financial Relations
Budget Paper No. 4: Agency Resourcing
Budget speech
Treasurer’s speech to Parliament
Portfolio papers
Ministerial statement
Regional Ministerial Budget Statement
Other resources
Budget overview – Building Australia’s Future
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