Treasurer Jim Chalmers’s federal budget 2025 aims to provide cost-of-living relief, improve housing affordability, boost healthcare investment, reform education, and introduce tax cuts—all while striving for economic stability and a balanced budget. As Australia’s best mortgage brokers, we at Gold Finance Group are here to help you navigate these changes, optimize your finances, and make informed property decisions using our loan repayment calculators and expert mortgage advice
Cost of Living Relief
The government has introduced several measures to ease financial pressure:
- Energy Bill Rebates – $150 for all households and eligible small businesses.
- Medicare Levy Threshold Increase – Singles earning under $27,222, families earning under $45,907, single pensioners earning under $43,020, and pensioners earning under $59,886 will be exempt from paying the Medicare levy.
- Cheaper Medicines – PBS co-payments reduced from $31.60 to $25 (effective 1 January 2026).
- Rent Assistance – A 10% increase to the maximum rate for eligible recipients.
- Income Tax Reductions – The tax rate for incomes between $18,201 and $45,000 will drop from 16% to 15% (July 2026), then to 14% (July 2027).
Housing & Property Market Updates
The budget introduces major reforms to support home buyers and investors:
- Foreign Buyer Restrictions – A 24-month ban on property purchases by foreign individuals, companies, and temporary residents starting mid-2025, freeing up housing for local buyers.
- Increased Foreign Buyer Fees – Higher application fees and vacancy taxes for foreign-owned properties.
- Housing Supply Boost – A $11.3 billion investment to support the construction of 1.2 million new homes over five years.
- Help to Buy Scheme – $800 million allocated to increase caps on property values and buyer incomes, allowing the government to cover up to 40% of a new build and 30% of established properties, enabling purchases with deposits as low as 2%.
- Prefab & Modular Construction Support – $54 million investment to expand this sector, accelerating affordable housing supply.
- Social and Affordable Housing – More funding is needed for the National Housing Accord and Housing Australia Future Fund, which aims to construct 55,000 properties over the next five years.
Considering a home loan? Use our loan repayment calculators to assess affordability and connect with the best mortgage brokers to secure the right mortgage for your needs.
Infrastructure Investments
Infrastructure spending is set to boost connectivity and urban development:
- Road & Rail Projects – $17.1 billion over 10 years to enhance transport networks.
- Western Sydney Development – Over $2.3 billion for infrastructure, including a future rail link to the Western Sydney Airport.
- National Broadband Network (NBN) – Up to $3 billion in equity to complete the NBN rollout and improve digital connectivity nationwide.
Education & Skills Development
The budget focuses on education access and affordability:
- Early Childhood Investment – $5 billion for wage increases for educators and infrastructure upgrades.
- School Funding – $407.5 million over four years for states adopting the Better and Fairer Schools Agreement.
- Higher Education Support – 20% reduction in HECS/HELP debt for 3 million Australians and an increased repayment threshold from $54,435 to $67,000.
- Free TAFE Programs – 100,000 free TAFE places every year from 1 January 2027.
Healthcare Reforms
Key healthcare investments in the budget include:
- Medicare Expansion – $7.9 billion to enhance bulk billing and increase access to GPs.
- Hospital Support – $1.8 billion allocated in 2025–26 to reduce emergency wait times.
- Women’s Health – $792.9 million over five years for reproductive health and menopause care.
- Aged Care Funding – $17.7 billion for aged care worker pay rises, plus $291.6 million for continued aged care reforms.
Support for Small Businesses
- $20,000 Instant Asset Write-Off – Extended for businesses with turnover under $10 million.
- Energy Efficiency Grants – Continued financial support to help businesses lower energy costs.
Economic Outlook & Future Projections
- $26.9 Billion Deficit – Forecast for this financial year, following back-to-back surpluses.
- Inflation Control – Expected to return to the RBA’s target range by late 2025.
- Economic Growth – Slower short-term growth, with signs of recovery by 2026.
What This Means for You – Federal Budget 2025
The Federal Budget 2025 delivers real benefits to Australian homeowners, businesses, and investors. Whether you’re looking to buy your first home, refinance, or invest, it’s crucial to have the right financial strategy in place.
At Gold Finance Group, we help you:
- Find the best loan options tailored to your needs
- Use our loan repayment calculators to plan smarter
- Connect with the best mortgage brokers for expert guidance
Take control of your financial future today!
Contact us for a free consultation and let’s discuss how these budget changes impact you.