2025 Australian Federal Budget: Winners and Losers Revealed

The 2025 Federal Budget delivered tax cuts, a 20% cut to student debt and an expanded Help to Buy scheme for winners such as taxpayers, graduates and first home buyers, while JobSeeker recipients, foreign property buyers and small businesses hoping for an extended instant asset write-off came away worse off. Treasurer Jim Chalmers built the budget around household relief and cost-of-living measures for low and middle income earners, and more than a year on, most of its headline measures are now law. Below is a rundown of who gained, who missed out, and where each measure stands today.

Winners of the 2025 Budget

The government has announced several initiatives that will dramatically improve the financial landscape for certain groups in the Australian population. Below are the key winners of the 2025 Australian federal budget:

Taxpayers

One of the most significant moves in this budget is the tax cuts for workers. Here’s how:

• All workers earning over $18,200 benefit from tax cuts.
• The lowest marginal rate dropped from 16% to 15% on 1 July 2026, and is legislated to fall further to 14% from 1 July 2027. See our guide to current income tax rates and brackets for the full picture.
• This change is predicted to save the average income earner around $2,190 by the year 2027-28, compared with 2023-24 settings.

University Students and Graduates

The government is taking commendable steps to alleviate student debt with a substantial reduction:

• The 20% cut became law in August 2025 and was applied automatically to eligible balances, saving the average graduate about $5,500.

First Home Buyers

First-time home buyers will benefit significantly from the expanded Help to Buy scheme:

• Buyers can access up to 40% contribution towards their new homes.
• This initiative comes alongside increased income and property price caps, making homeownership more attainable.

Aged Care and Childcare Workers

The budget has set aside substantial funding aimed at improving wages in these essential sectors:

• $2.6 billion will be allocated for pay rises for aged care workers.
• A further $3.6 billion will support early childhood educators, reinforcing the importance of these roles.

Parents

Families are likely to benefit from the removal of the activity test for subsidised childcare:

• Since taking effect on 1 January 2026, this allows families earning up to $530,000 to access three days of subsidised childcare per week regardless of hours worked.

Beer Brewers and Drinkers

Another unique aspect of the budget is the freeze on draught beer excise for the next two years, benefiting both brewers and consumers alike.

Job Switchers

The budget also intends to promote workforce mobility:

• Non-compete clauses for most workers will be banned, simplifying the process for individuals who wish to switch jobs or launch their own businesses.

Losers of the 2025 Budget

However, not all news is positive. Certain groups and sectors will be negatively impacted by this budget. Here is a look at the key losers:

Welfare Recipients

Despite calls for increased support, the government has not raised JobSeeker payments, which continue to be below the poverty line, leaving many vulnerable Australians in a precarious situation.

Foreign Home Buyers

In efforts to ease the housing crisis, a two-year ban on foreign purchases of established homes began on 1 April 2025. It has since been extended by a further 2 years and 3 months, to 30 June 2029, continuing to restrict international investment in Australian real estate.

Tech Startups

The absence of direct investment in startup initiatives has left many in the tech sector disappointed:

• The Tech Council of Australia termed this lack of investment as a “missed opportunity,” critical for the growth and innovation of new technologies.

Consultants and Contractors

Working professionals in the consulting sector may feel the pinch as:

• The government will reduce spending on private sector consultants by $720 million, opting to build public service capacity instead.

Cigarette and Vape Sellers

A crackdown on the illicit tobacco and vaping markets will lead to increased enforcement measures, making it more challenging for these businesses to operate.

Small Businesses

While some small businesses saw benefits from an extended energy rebate, the $20,000 instant asset write-off was not extended in this particular budget. It was later extended in separate legislation through to 30 June 2026, and the government has since proposed making the $20,000 threshold permanent from 1 July 2026, though that change is not yet law.

Other Notable Budget Measures

Aside from the immediate winners and losers, the budget encompasses a range of measures aimed at bolstering the Australian economy:

• Upgrading fibre connections for homes to enhance internet accessibility.
• Implementing strict measures on tax avoidance to ensure fair contributions from all sectors.
• Continued commitment to crack down on the illicit tobacco trade to safeguard public health.

In summary, the 2025 Australian Federal Budget has introduced a myriad of changes aimed at alleviating financial pressures for many, particularly taxpayers, students, and workers in essential sectors. Nevertheless, certain groups, including welfare recipients and those in the tech industry, face significant challenges moving forward. As the nation adjusts to these new financial parameters, discussions will likely continue on how best to address the gaps and opportunities within the Australian economy.

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Disclaimer: This article contains general information only and does not constitute financial, legal or tax advice. It has been prepared without regard to your objectives, financial situation or needs. Tax and superannuation laws change frequently, and the information in this article may not reflect the current law or may become inaccurate over time. Before acting on anything in this article, you should consider its appropriateness to your circumstances and seek advice from a registered tax agent or qualified adviser.