As expected with a Federal election looming, the budget is not a horror one of austerity. However, the 2025-2026 budget is characterised by the absence of any significant initiatives.
There is very little in this budget that is new, other than some surprise tax cuts, which are welcome given they mostly benefit people on low incomes

There are continuing investments in some key areas supporting wages growth where it is solely needed and for rebuilding important areas of public good. However, there remains much that needs to be done in the next parliament, whoever is in government.

“The budget does deliver a welcome tax cut targeted towards those on low incomes” Chief Economist Greg Jericho notes, “but the lack of new spending and initiatives highlights the need for policies from all political parties in the coming election campaign that address inequality and the needs of people who have been most hurt by cost of living rises over the past three years.”

Read our full budget briefing paper for more information