The 2025 Australian Federal Budget, presented by Treasurer Jim Chalmers, has stirred significant conversation across the country as it highlights both winners and losers among various sectors of society. With the government’s focus on household budget relief and cost-of-living measures, especially for low and middle-income earners, it’s essential to dissect who stands to gain and who may face setbacks as a result of these fiscal changes.
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 will benefit from tax cuts.
- The lowest marginal rate will decrease from 16% to 14% by mid-2027.
- This change is predicted to save the average income earner around $2,190 by the year 2027-28.
University Students and Graduates
The government is taking commendable steps to alleviate student debt with a substantial reduction:
- A 20% cut on student debts will save 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:
- This will allow families earning up to $530,000 to access three days of subsidised childcare per week.
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, there will be a two-year ban on foreign investment in existing homes, which may hinder 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 will see benefits from an extended energy rebate, they will miss out on the non-extension of the $20,000 instant asset write-off, which has been a lifeline for many.
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 is information and does not constitute financial, legal or tax advice.