Treasurer Jim Chalmers handed down his fifth budget on Tuesday night, which included major tax changes and a cost-of-living sweetener. Find out if you are a winner or loser below.
Taxpayers
While it's nothing to retire on, there's a few modest tax perks in this year's budget, including a $250 tax offset. Claiming work-related expenses also gets easier, with an automatic $1000 deduction for workers.
Patients
Extra money will be made available to add new drugs to the pharmaceutical benefits scheme, an and additional $25 million to go into public hospitals.
New home buyers
Changes to negative gearing, the capital gains tax and extra money to the states and territories to build new homes are expected to make it easier for those trying to enter the housing market.
Truckers
Heavy vehicle road user charge reduced to zero.
Defence
$53 billion for drones, underwater and other programs, and an additional 380 departmental roles and 320 for the Australian Submarine Agency.
Property investors
Buying a second or third existing home and hoping the price goes up will be come a lot less attractive for investors. While incentives remain in place for those building new or those who held their properties before budget night, those investors are being encouraged to look elsewhere and give young home buyers a chance to get into the market. Foreign investors will also continue to be prevented from buying up those properties.
NDIS payment recipients
Recently announced restructuring of eligibility to the National Disability Insurance Scheme will lead to a $37.8 billion saving over the next four years as the government seeks to reign in ballooning costs of the scheme.
Trust beneficiaries
Trusts have been growing faster than the number of businesses created in recent years, and the government wants it to stop. A minimum 30 per cent tax will be introduced on discretionary trusts from July 2028.
Consultants, contractors
The government expects to save a further $2.7 billion in 2029-30 from reducing spending on external labour hire. These savings come on top of existing cuts, with the government expecting to save a total of nearly $15 billion since 2022-23.
EV buyers
Generous tax benefits for those leasing an electric vehicle to be gradually phased down and the cap reduced to vehicles costing $75,000 or less in coming years to encourage uptake of cheaper EVs.
New $250 tax offset, plus $1000 instant tax deduction for work-related expenses. Comes on top of already legislated tax cuts.
Negative gearing will be limited to new builds from July 2027, but remains unchanged for all properties purchased before budget night. Investors buying an existing property after budget night will only be able to deduct losses against residential property income, but not other sources like wages.
The 50 per cent capital gains tax discount will be replaced with a previous inflation-adjusted measure. A new minimum 30 per cent rate on capital gains will be introduced from July.
A new minimum tax of 30 per cent on discretionary trusts will be introduced from July 2028. The government wants to stem the growth in the number of trusts which have doubled in the last 20 years but affected small businesses and others will be given time to restructure.
Previously announced funds for 100,00 homes for first-home buyers across Australia, ACT to get $50 million over three years starting 2027-28. A new homes bonus will be allocated to states and territories that exceed their national housing targets. Bans on foreign investors buying housing to continue.
$20,000 instant asset write-off to be made permanent and cutting red tape to help small businesses get access to credit.
$25 billion boost to Medicare over five years, $25 billion into public hospitals and $1.8 billion to permanently fund Medicare Urgent Care Clinics. More medications to be listed on pharmaceutical benefits scheme but NDIS eligibility to be tightened, saving $37.8 billion over four years.
Wages are forecast to grow at 3.25 per cent in 2025-26 and around 3.5 per cent in the following years, remaining relatively stable compared to recent years. The unemployment rate is expected to sit between 4.25 and 4.5 per cent until 2029-30 unless the global situation deteriorates which could send it higher.
Treasury expects inflation to spike this year at 5 per cent before starting to drop. But in a worse-case scenario where the war in the Middle East drags on and oil prices hit $200 a barrel, unemployment could hit pre-pandemic levels and inflation could rise above 7 per cent, putting huge strain on family budgets.
$63.8 billion in savings over four years including $36.2 billion from reigning in NDIS costs.
Public service numbers to grow in the next financial year taking the service to an average size of more than 217,000 jobs. Government expects to convert an additional 1400 outsourced roles to full-time public servants. New agency the National Environmental Protection Agency to be created.
Current tax benefits on electric vehicles to be progressively wound back. EVs costing more than $75,000 to be reduced to a 25 per cent discount on the fringe benefits tax after April 2027. Vehicles costing less than $75,000 to continue to receive the full discount until April 2029, after which time it will reduce to 25 per cent.
New subsidies for aged care providers to drive construction of an estimated 5000 aged care beds a year. Extra money going into support-at-home packages including fully subsidising personal care services such as showering, removing co-contributions.
A further $53 billion to defence spending over the next decade for programs including undersea warfare, autonomous and uncrewed systems and small, low-cost drones.
