‘This Budget helps people under pressure today and invests in a Future Made in Australia’: Treasurer, the Hon Dr Jim Chalmers MP.

This evening, the Albanese Government delivered Labor’s third Federal Budget since assuming office in 2022, promising cost-of-living relief, while delivering a second consecutive surplus. 

The 2024-25 Budget is built on 5 pillars: 

  1. Easing cost-of-living pressures; 
  2. Building more homes for Australians; 
  3. Investing in a Future Made in Australia and the skills and universities needed to make it a reality; 
  4. Strengthening Medicare and the care economy; and  
  5. Broadening opportunity and advancing equality. 

In his Federal Budget Speech, Treasurer, the Hon Dr Jim Chalmers MP advised that the 2024-25 Budget is a ‘responsible and restrained Budget that ‘strikes the right balance between keeping pressure off inflation, delivering cost-of-living relief, supporting sustainable economic growth and strengthening public finances’. 

This Budget forecasts a second surplus in 2023-24, making it the first time a government has delivered back-to-back surpluses in nearly two decades. This Budget also identifies $27.9 billion in savings and reprioritisations, taking the total to $77.4 billion since coming to government.  

Nexus APAC has identified critical measures from the Federal Budget Papers. 

Health and Aged Care

The Health and Aged Care Budget sees $10.7 billion in total new investments, including $8.5 billion in new health measures and $2.2 billion in aged care investments.  

This Budget includes a significant number of important initiatives and measures for the Health and Aged Care Portfolio. The Government’s Health and Aged Care Budget has been framed around four key themes: 

  1. Strengthening Medicare; 
  2. Cheaper Medicines; 
  3. Quality Aged Care; and 
  4. A Fit and Healthy Australia. 

Strengthening Medicare 

  • $1.2 billion over five years from 2023–24 ($14.8 million per year ongoing) to strengthen Medicare by supporting earlier discharge from hospital for older Australians, improving access to essential services, modernising Australia’s digital health infrastructure and ensuring the integrity and compliance of Medicare. Measures include: 
    • $610.4 million over four years from 2024–25 for states and territories to invest in initiatives that address long stay older patient challenges. 
    • $190 million over three years from 2025–26 for the extension and redesign of the Commonwealth’s Transition Care Programme to provide short-term care of up to 12 weeks for older people after a hospital stay. 
    • $57.4 million in 2024–25 to continue initiatives under the Health Delivery Modernisation Program and to update My Health Record. 
    • $56.8 million over five years from 2023–24 for the expansion of the Commonwealth’s successful Acute to Residential Care Transition Service dementia program to transition long-stay patients. 
    • $24.9 million over two years from 2024–25 for the continuation of the Comprehensive Palliative Care in Aged Care program to support states to deliver specialist palliative care services in residential aged care. 
    • $18.1 million over four years from 2024–25 (and $0.5 million per year ongoing) to extend and expand the Government’s response to the Independent Review of Medicare Integrity and Compliance (the Philip Review). 
  • $895.6 million over four years from 2024–25 to ensure the Medicare Benefits Schedule (MBS) remains clinically appropriate and reflects modern medical practices. Measures include:  
    • $356.3 million over three years from 2025–26 through amending MBS pathology items, in line with recommendations by the MBS Review Taskforce – Diagnostic Medicine Clinical Committee to reduce unnecessary testing to achieve better patient outcomes. 
    • $188.8 million over four years from 2024–25 by amending the schedule fee for certain CT items to reflect recent technological advances in CT scanning. 
    • $92.8 million over four years from 2024–25 to improve the viability of nuclear medicine imaging through a targeted schedule fee increase and reintroducing annual indexation. 
    • $69.8 million over four years from 2024–25 to remove the barriers to accessing Medicare rebates for MRI machines in metropolitan areas to reduce waiting times and costs for patients. 
    • $33.7 million over four years from 2024–25 to introduce a new MBS item to provide PET/CT imaging for the assessment of treatment response and recurrence for patients with an eligible rare or uncommon cancer type. 
  • $888.1 million over 8 years from 2024–25 (and $139.8 million per year ongoing) to respond to the Better Access evaluation and to strengthen Australia’s mental health and suicide prevention system. 
  • $227 million over three years from 2023–24 to boost the capacity of Medicare Urgent Care Clinics. 

Cheaper Medicines 

  • $3.4 billion over five years from 2023–24 for new and amended listings on the Pharmaceutical Benefits Scheme and the Repatriation Pharmaceutical Benefits Scheme. 
  • Under the Eighth Community Pharmacy Agreement, the Government will provide up to an additional $3 billion for community pharmacy and cheaper medicines. 
  • $1.4 billion over 13 years from 2024–25 through the Medical Research Future Fund (MRFF) to continue to invest in life-saving medical research in Australia, for a total commitment through the MRFF of $6.4 billion over 13 years in research funding. Other measures include: 
    • $411.6 million (for a total contribution of $1.6 billion over 13 years from 2024–25) to continue existing research missions and introduce two new 10-year research mission from 2027–28 for low-survival cancers and reducing health inequities. 
    • $377.5 million (for a total contribution of $2.0 billion over 10 years from 2024–25) to translate research outcomes into medical practice. 
  • $480.2 million over five years from 2023–24 to reduce patient costs and improve access to medicines. Measures include: 
    • $318 million over five years from 2023–24 (and an additional $166.4 million in 2028–29) as part of the Eighth Community Pharmacy Agreement for: 
    • PBS general co-payments to not be indexed between 1 January 2025 and 31 December 2025 (inclusive), with indexation resuming on 1 January 2026; and 
    • PBS concessional co-payments to not be indexed between 1 January 2025 and 31 December 2029 (inclusive), with indexation resuming on 1 January 2030. 
    • $151.1 million over five years from 2023–24 (and an additional $45.6 million in 2028–29), as part of the Eighth Community Pharmacy Agreement to increase the Dose Administration Aids cap to 90 per week. 
    • $11.1 million over five years from 2023–24 (and $2.8 million per year ongoing) to improve access to Pharmaceutical Benefits Scheme subsidised medicines for First Nations people. 

Quality Aged Care and Health Workforce 

  • $2.2 billion over five years from 2023–24 to deliver key aged care reforms and to continue to implement recommendations from the Royal Commission into Aged Care Quality and Safety. Measures include: 
    • $1.2 billion over five years from 2023–24 for critical aged care digital systems. 
    • $531.4 million in 2024–25 to release 24,100 additional home care packages in 2024–25. 
    • $174.5 million over two years from 2024–25 to fund the ICT infrastructure needed to implement the new Support at Home Program and Single Assessment System. 
    • $110.9 million over four years from 2024–25 to increase the regulatory capability of the Aged Care Quality and Safety Commission as part of the Government’s response to the Final Report of the Capability Review of the Aged Care Quality and Safety Commission, and to implement a new aged care regulatory framework from 1 July 2025. 
    • $65.6 million over four years from 2024–25 to attract and retain aged care workers, collect more reliable data, and improve the outcomes for people receiving aged care services through existing aged care workforce programs. 
    • $37 million over two years from 2024–25 to reduce wait times for the My Aged Care Contact Centre due to increased demand and service complexity. 
    • $30.4 million over three years from 2024–25 to states and territories to continue to deliver the Specialist Dementia Care Program. 
    • $21.6 million over three years from 2024–25 to extend the Home Care Workforce Support Program for an additional three years to facilitate the growth of the care and support workforce in thin markets. 
    • $11.8 million over three years from 2023–24 to implement the new Aged Care Act, including governance activities, program management and extension of the Aged Care Approvals Round. 
    • $10.8 million over two years from 2024–25 to extend the Palliative Aged Care Outcomes Program and the Program of Experience in the Palliative Approach program to continue to upskill the aged care and primary care workforce to further embed palliative care capacity in the aged care workforce. 
  • $116.2 million over five years from 2023–24 to strengthen and support the health workforce, including: 
    • $90 million over three years from 2023–24 to fund the implementation of the health-related recommendations of the Independent review of Australia’s regulatory settings relating to overseas health practitioners (the Kruk Review). 

A Fit and Healthy Australia 

  • $631.1 million over four years from 2024–25 (and $112.1 million per year ongoing) to support ongoing access to life-saving vaccines. Measures include: 
    • $490 million over four years from 2024–25 (and $107.4 million per year ongoing) to continue the National COVID-19 Vaccine Program. 
    • $82.5 million over three years from 2025–26 to ensure ongoing joint responsibility with states and territories for vaccination programs. 
  • $514.8 million over four years from 2024–25 to support preventive and other health initiatives, including: 
    • $303.9 million over two years from 2024–25 to ensure the National Medical Stockpile can continue to respond to health emergencies and improve pandemic preparedness. 
    • $22.3 million over four years from 2024–25 to continue funding for the Antimicrobial Use and Resistance in Australia project which monitors antimicrobial use and resistance. 
    • $22.1 million over two years from 2024–25 to continue support for preventive health and chronic disease research including patient and clinician services for Australians with chronic conditions, in support of the National Preventive Health Strategy 2021–2030. 
  • $71 million over four years from 2024–25 to continue support services, programs and research to improve cancer outcomes for Australians, in line with the Australian Cancer Plan, including: 
    • $38.8 million over four years from 2024–25 to the states and territories to continue the Federation Funding Agreement for the Participant Follow-up Function of the National Bowel Cancer Screening Program. 
    • $15 million over two years from 2024–25 to continue the national skin cancer prevention campaign. 
    • $10.3 million over four years from 2024–25 to Melanoma Institute Australia to undertake targeted research into skin cancer screening. 
    • $6.9 million over four years from 2024–25 to Canteen to continue delivery of the Youth Cancer Services program. 
    • The Government has also lowered the eligibility for free bowel cancer screening from age 50 to 45, so that Australians between the age of 45 and 49 can request a screening kit. 
  • $56.1 million over four years from 2024–25 (and $0.4 million per year ongoing) to improve access to sexual and reproductive healthcare for women. 
  • $43.9 million over three years from 2024–25 to expand activities that address priorities identified in the Human Immunodeficiency Virus (HIV) Taskforce Report recommendations. 
  • $126.5 million over two years from 2024–25 to extend and expand activities to support the prevention, testing and treatment of bloodborne viruses and sexually transmissible infections, including support for First Nations communicable disease services. 

Defence

On 17 April 2024, in an address to the National Press Club of Australia, Minister for Defence the Hon Richard Marles MP announced the National Defence Strategy (NDS) and, within it, a rebuilt Integrated Investment Program (IIP). The Budget indicates many of the Government’s reprioritisations to meet the strategic policy objectives set out in the NDS, which include:  

  • $50.3 billion over ten years from 2024–25 (and $7.7 billion per year ongoing) to deliver the 2024 NDS and IIP and support a shift in Defence’s force posture, structure and capability priorities. Funding includes: 
    • $1 billion over three years from 2024–25 to accelerate priority investments in the targeting enterprise, long-range fires, theatre logistics, fuel resilience and robotic and autonomous systems. 
    • $11.1 billion over ten years from 2024–25 to deliver the Government’s response to the Independent Analysis of Navy’s Surface Combatant Fleet. 
    • $38.2 billion over seven years from 2027–28 (and $7.7 billion per year ongoing) to support the next generation capabilities within the Integrated Investment Program. 
  • $232.2 million over three years from 2023–24 to provide regional and global assistance and support peacekeeping activities. Funding includes: 
    • $144.3 million over two years from 2023–24 to provide additional military support in response to requests from the Government of Ukraine. 
  • $222 million over four years from 2024–25 (and $83.4 million per year ongoing) to reform the legislation framework for veterans’ compensation and rehabilitation by moving to a single ongoing Act from 1 July 2026. 
  • $194.4 million over four years from 2024–25 (and $20.6 million per year ongoing) to provide additional resourcing to meet increased service delivery pressures including claims processing, and modernise the digital capability of the Department of Veterans’ Affairs. Funding includes:  
    • $186 million over four years from 2024–25 (and $20.6 million per year ongoing) to reduce the time taken to process claims, and respond to increased demand; and  
    • $8.4 million over two years from 2024–25 to pilot an ICT solution to improve case management and workflow management capabilities in the Department of Veterans’ Affairs. 
  • $166.2 million over five years from 2023–24 to support the implementation of the Defence Industry Development Strategy. Funding includes: 
    • $165.7 million over five years from 2023–24 to establish the Defence Industry Development Grant program for Australian defence industry, supporting Australian businesses to increase their scale and competitiveness and respond to Defence’s capability requirements. 
  • $101.8 million over seven years from 2024–25 to continue to build the Australian industrial workforce required to support the delivery of Australia’s conventionally-armed, nuclear-powered submarines. This investment includes: 
    • $33.5 million over six years from 2024–25 for initiatives to enhance domestic industry and workforce capacity; 
    • $17.2 million in 2024–25 to expand Australian industry participation in the nuclear-powered submarine supply chain; and  
    • $16.3 million over six years from 2024–25 for 3,000 scholarships for students studying undergraduate STEM courses relevant to the nuclear-powered submarine enterprise. 
  • $60.8 million in 2023–24 to expand Operation LILIA to provide Australian Defence Force logistics, security and enabling support for the 2023 Pacific Games and the 2024 Solomon Islands Joint Elections, at the invitation of the Solomon Islands. 
  • $59.6 million over three years from 2024–25 to continue access to health and support services for veterans and their families. Funding includes: 
    • $48.4 million over two years from 2024–25 to provide viability payments to providers to maintain the short-term viability of Veterans’ Home Care and Community Nursing programs; 
    • $10.2 million over three years from 2024–25 to extend access to the Provisional Access to Medical Treatment program, which provides access to funded medical treatment for ill and injured veterans who are awaiting a liability determination on the claim they have submitted; and  
    • $1 million in 2024–25 to extend the Veterans’ Chaplaincy Pilot Program for one year, which will provide additional time to complete the evaluation of the program. 
  • $17.5 million over ten years from 2024–25 (and $1.8 million per year ongoing) to establish a new Parliamentary Joint Committee on Defence. 
  • $15.3 million over seven years from 2023–24 to support the manufacture and export of more than 100 Boxer Heavy Weapon Carrier vehicles to the Federal Republic of Germany. Manufacturing for the vehicles by Rheinmetall Defence Australia will occur in Redbank, Queensland. 
  • $14 million over two years from 2024–25 to establish a new grant program to support peacebuilding and peacekeeping activities by the United Nations and related institutions. 
  • $13.2 million in 2023–24 to support the Government’s response to the Hamas-Israel conflict, including: 
    • $12.2 million in 2023–24 for Operation BEECH to deploy Australian Defence Force personnel to support Australian citizens and foreign nationals in the region, including through airlifting personnel; and  
    • $1 million in 2023–24 for 140 aerial delivery parachutes to Jordan and the United Arab Emirates to assist with the delivery of humanitarian aid to civilians in Gaza. 

Foreign Affairs and Trade

The Government has announced budgetary measures to develop Australia’s trade relationship with Southeast Asia, and to assist Southeast Asian and Pacific Island states with challenges including poverty, economic growth, healthcare, infrastructure investment, climate change.  

  • $2 billion for the Southeast Asia Investment Financing Facility, which will provide loans, guarantees, equity and insurance for projects that would boost Australian trade and investment in Southeast Asia. 
  • $505.9 million over five years from 2023–24 (and $118.3 million per year ongoing) to deepen Australia’s engagement with Southeast Asia, including measures to implement the next phase of the Government’s response to ‘Invested: Australia’s Southeast Asia Economic Strategy to 2040’. Funding includes: 
    • $229.6 million over four years from 2024–25 to continue the Mekong-Australia Partnership; 
    • $152.8 million over four years from 2024–25 to continue the Partnerships for Infrastructure program; and 
    • $68.2 million over four years from 2024–25 to continue the Marine Resources Initiative and enhance Southeast Asia maritime cooperation. 
  • $254.2 million over four years from 2024–25 to improve the capability of the Department of Foreign Affairs and Trade to deliver foreign policy outcomes.  
  • $206.5 million over four years from 2024–25 to enhance Australia’s presence in Pacific Island countries and ability to support the Pacific family. Funding includes: 
    • $160.4 million over four years from 2024–25 for enhancement and expansion of property at Pacific posts to support a larger presence in the Pacific; and 
    • $5.5 million in 2024–25 to extend the Australian Federal Police deployment to the Solomons International Assistance Force. 
  • $150 million over four years from 2024–25 in contributions to international climate financing funds. 
  • $69.7 million over four years from 2024–25 to support Australian businesses and to boost Australia’s trade, tourism, and investment opportunities.  
  • $20.7 million over five years from 2023–24 to deliver the Australia-France Roadmap.  

Industry, Science and Resources

The Government is investing in Industry, Science and Resources through the following measures:  

  • $46.9 million over four years from 2024–25 to support the development of industries in Australia and maintain the affordability of nuclear medicines for Australians.  
  • $43 million over six years from 2024–25 to the Australian Radioactive Waste Agency to continue activities around identifying radioactive waste disposal pathways.  
  • $39.9 million over five years from 2023–24 for the development of policies and capability to support the adoption and use of artificial intelligence (AI) technology in a safe and responsible manner. 
  • $29.7 million over three years from 2023–24 to improve environmental and safety outcomes in the offshore resources sector.  

Climate Change, Energy, the Environment and Water

In line with the Government’s commitments to protect the natural environment and reduce emissions, the following measures have been announced:    

  • $290.5 million over five years from 2023-24 to continue delivery of the Australian Antarctic Program and expand Australia’s international scientific activities. 
  • $217.3 million over four years from 2024–25 for the Department of Climate Change, Energy, the Environment and Water to extend terminating funding for core water policy functions. 
  • $174.6 million over six years from 2024–25 to deliver new water infrastructure projects including 11 First Nations projects. 
  • $76.2 million over five years from 2023-24 to support Australia’s continued engagement in international climate change and energy transition issues. 
  • $48 million over four years from 2024–25 to implement further reforms to the Australian Carbon Credit Unit scheme as part of the Government’s response to the Independent Review of Australian Carbon Credit Units. 
  • $32.6 million over four years from 2024–25 to establish regulatory frameworks and bilateral instruments to better support heavy industry to reduce emissions to meet Paris Agreement commitments, both in Australia and overseas. This will provide industry with the option of moving carbon dioxide to suitable and secure geological storage sites. 
  • $32 million over four years from 2024–25 to extend the terminating Improving Great Artesian Basin Drought Resilience program. 
  • $28.6 million over four years from 2024–25 to the Inspector-General of Water Compliance to undertake inquiry, oversight and public engagement functions. 
  • $27.7 million over four years from 2024–25 to implement priority consumer energy resources reforms that help consumers save on bills by boosting the supply of renewable electricity. 
  • $27 million in 2024–25 to expand the existing Resilient Rivers Water Infrastructure Program to enable the Commonwealth to work with private proponents on water recovery activities as part of the Murray-Darling Basin Plan. 
  • $23 million in 2024–25 to continue delivery of the Government’s circular economy policy, program and legislative functions. 
  • $17.6 million over two years from 2024–25 for the Department of Climate Change, Energy, the Environment and Water to establish and commence operation of the Nature Repair Market. 
  • $16.6 million over four years from 2024–25 for the Australian Energy Regulator to help households get onto a better plan by sustaining regulatory activities. 
  • $14 million over two years from 2024–25 for the Clean Energy Regulator to administer the Nature Repair Market. 
  • $11.4 million over four years from 2024–25 to continue delivery of priority remediation projects in the Jabiru township located within the Kakadu National Park. 
  • $5 million in 2024–25 for the Great Barrier Reef Marine Park Authority to engage tourism operators to conduct reef monitoring, protection and other stewardship activities to protect the Great Barrier Reef. 

Infrastructure, Transport, Regional Development, Communication and the Arts

The following budget measures are included for Infrastructure, Transport, Regional Development, Communications and the Arts:  

  • $10.1 billion over 11 years from 2023–24 for existing projects in the Infrastructure Investment Program, including: 
    • $3.3 billion for North East Link in Victoria; and 
    • $1.2 billion for the Direct Sunshine Coast Rail Line in Queensland. 
  • $4.1 billion over seven years from 2024–25 for 65 new priority infrastructure projects across Australia under the Infrastructure Investment Program. 
  • $540 million for the Australian Rail Track Corporation to invest in the interstate rail network. 
  • $302.6 million over five years from 2024–25 (and $53.5 million per year ongoing) to enable operations at Western Sydney International (Nancy-Bird Walton) Airport. 
  • $237.7 million over seven years from 2023–24 (and $2.3 million per year ongoing) to support aviation, road, rail and maritime transport priorities. 
  • $216.6 million over four years from 2024–25 (and $59.9 million per year ongoing) to further support Australia’s arts, entertainment and cultural sector under the National Cultural Policy – Revive.  
  • $154.5 million over six years from 2023–24 (and $12.6 million per year ongoing) to implement a New Vehicle Efficiency Standard to support greater choice of fuel-efficient vehicles that will reduce motoring costs and transport emissions.  
  • $100 million over four years from 2025–26 for an Active Transport Fund to support the construction and upgrade of bicycle and walking paths across Australia. 
  • $78.9 million over five years from 2024–25 (and $7.4 million per year ongoing) to support media sustainability and deliver communications priorities.  
  • $68 million over four years from 2023–24 to support First Nations digital inclusion.  
  • $7.9 million over two years from 2024–25 to support online safety. 

Social Services

The Treasurer has repeatedly stated that cost-of-living relief and addressing entrenched disadvantages are key focuses for this Federal Budget. Social services measures include: 

  • $2.8 billion over five years from 2023–24 to improve the way Services Australia delivers services to the Australian community. Funding includes: 
    • $1.8 billion over three years from 2023–24 for additional frontline staff to help stabilise Services Australia claims backlogs; 
    • $580.3 million over four years from 2024–25 to sustain the myGov platform; and 
    • $314.1 million over two years from 2024–25 to continue to enhance safety and security at Services Australia centres. 
  • $1.9 billion over five years from 2023–24 to increase all Commonwealth Rent Assistance maximum rates by 10 per cent from 20 September 2024 to help address rental affordability challenges for recipients. 
  • $1.1 billion over five years from 2023–24 to strengthen Australia’s government-funded Paid Parental Leave (PPL) scheme and improve women’s retirement outcomes.  
  • $925.2 million over five years from 2023–24 to make permanent the Leaving Violence Program that will provide financial support, safety assessments and referrals to support services for victim-survivors leaving a violent intimate partner relationship. Funding includes: 
    • $756.4 million over five years from 2023–24 to establish the Leaving Violence Program (LVP) from 1 July 2025 to provide financial support of up to $5,000; and 
    • $152.3 million over three years from 2023–24 to extend and expand the Escaping Violence Payment and the Temporary Visa Holders Experiencing Violence Pilot trials. 
  • $468.7 million over five years from 2023–24 to support people with disability and get the NDIS back on track. Funding includes: 
    • $160.7 million over four years from 2024–25 to upgrade the NDIS Quality and Safeguards Commission’s information technology systems; and 
    • $129.8 million over two years from 2023–24 for design and consultation work to respond to the findings of the Independent NDIS Review. 
  • $253.6 million over five years from 2023–24 to reform employment services and supports for people with disability. Funding includes: 
    • $227.6 million over five years from 2023–24 to implement a new specialist disability employment program to replace the existing Disability Employment Services program; and 
    • $23.3 million over four years from 2024–25 to establish a Disability Employment Centre of Excellence. 
  • $138 million over five years from 2023–24 to boost support for Australians in financial distress or experiencing financial hardship and to build financial resilience.  
  • $41.2 million over five years from 2023–24 (and $7 million per year ongoing from 2028–29) to extend eligibility for the existing higher rate of JobSeeker payment to single recipients. 
  • $18.6 million over five years from 2023–24 (and $3.1 million per year ongoing) to support Carer Payment recipients through increased flexibility to undertake work, study and volunteering activities.  
  • $14.3 million over five years from 2024–25 to extend and expand existing community support for parents and caregivers to improve child outcomes in line with the Early Years Strategy.  

Treasury

As anticipated, Treasury measures predominantly centre around cost-of-living relief through tax cuts for all Australians: 

  • Under the Government’s tax cuts from 2024–25: 
    • The 19 per cent tax rate will be reduced to 16 per cent; 
    • The 32.5 per cent tax rate will be reduced to 30 per cent;  
    • The income threshold above which the 37 per cent tax rate applies will be increased from $120,000 to $135,000; and 
    • The income threshold above which the 45 per cent tax rate applies will be increased from $180,000 to $190,000. 
  • The Government has increased the Medicare levy low-income thresholds for singles, families, and seniors and pensioners from 1 July 2023 to provide cost-of-living relief: 
    • The threshold for singles has been increased from $24,276 to $26,000; 
    • The family threshold has been increased from $40,939 to $43,846;  
    • For single seniors and pensioners, the threshold has been increased from $38,365 to $41,089;  
    • The family threshold for seniors and pensioners has been increased from $53,406 to $57,198; and 
    • The family income thresholds will now increase by $4,027 for each dependent child, up from $3,760. 
  • The Government will continue to improve cash flow and reduce compliance costs for small businesses by extending the $20,000 instant asset write-off by 12 months until 30 June 2025. 
  • The Government will extend the ATO Personal Income Tax Compliance Program for one year from 1 July 2027. 
  • The Government will provide $187 million over four years from 1 July 2024 to the ATO to strengthen its ability to detect, prevent and mitigate fraud against the tax and superannuation systems. 
  • The Government will extend the ATO Tax Avoidance Taskforce for two years from 1 July 2026. 
  • The Government will strengthen the foreign resident capital gains tax (CGT) regime to ensure foreign residents pay their fair share of tax in Australia and to provide greater certainty about the operation of the rules. 
  • $3.5 billion over three years from 2023–24 to extend and expand the Energy Bill Relief Fund to provide a $300 rebate to all Australian households and a $325 rebate to eligible small businesses in 2024–25 bills to provide cost of living relief. 
  • $600 million to the Government of Papua New Guinea (PNG) to address the PNG Government’s estimated 2023 budget shortfall. 

Agriculture, Fisheries and Forestry

In investing in Australian agriculture, the Albanese Government has prioritised improving the resilience of the sector to a changing climate. The following measures are included:  

  • $519.1 million over eight years from 2024–25 from the Future Drought Fund for initiatives that provide improved support to farmers and communities to manage drought and adapt to climate change. 
  • $107 million over five years from 2024–25 for a suite of actions for sheep producers and the supply chain, market development, sheep welfare, implementation and engagement to support an orderly phase out of live sheep exports by sea. 
  • $63.8 million over ten years from 2024–25 to support initial emission reduction efforts in the agriculture and land sectors as part of Australia’s transition to net zero by 2050. 
  • $13.9 million over four years from 2024–25 to maintain drought policy capability. 

Education

Education measures include:

  • $110 million over four years from 2024–25 to accelerate action against the National Agreement on Closing the Gap Priority Reforms in the Education portfolio. 
  • $98.4 million in 2024–25 to help childcare services increase their capacity to support inclusion of children with additional needs, through tailored support and funding to services. 
  • $70.3 million over five years from 2023–24 to continue support for initiatives to improve education outcomes for students. 
  • $30 million over two years from 2024–25 in IT and payment services to provide funding towards a wage increase for the Early Childhood Education and Care sector.  

Cross Portfolio

Tertiary Education

  • $427.4 million over four years from 2024–25 (and an additional $1.2 billion from 2028–29 to 2034–35) to establish a new Commonwealth Prac Payment of $319.5 per week. 
  • $350.3 million over four years from 2024–25 to expand access to university enabling and preparation programs. 
  • $239.7 million over five years from 2023–24 to limit the indexation of the Higher Education Loan Program (and other student loans) debt to the lower of either the Consumer Price Index or the Wage Price Index, effective from 1 June 2023, subject to the passage of legislation. 
  • $27.7 million over four years from 2024–25 to develop initiatives that break down artificial barriers and harmonise arrangements between the higher education and vocational education and training sectors. 
  • $24.6 million over four years from 2024–25 (and an additional $72.7 million from 2028–29 to 2034–35) for Charles Darwin University to establish a new medical school for the Northern Territory. 
  • $19.4 million over two years from 2024–25 to establish a National Student Ombudsman from 1 February 2025.  
  • $18.7 million over four years from 2024–25 to introduce a National Higher Education Code to Prevent and Respond to Gender-based Violence. 

A Future Made in Australia

  • $7 billion over 11 years from 2023–24 to introduce a Critical Minerals Production Tax Incentive from 2027–28 to 2040–41 to support downstream refining and processing of Australia’s 31 critical minerals to improve supply chain resilience. 
  • $6.7 billion over ten years from 2024–25 to introduce a Hydrogen Production Tax Incentive from 2027–28 to 2040–41 to producers of renewable hydrogen to support the growth of a competitive hydrogen industry. 
  • $1.7 billion over ten years from 2024–25 for the Future Made in Australia Innovation Fund to support innovation, commercialisation, pilot and demonstration projects and early-stage development in priority sectors. 
  • $1.5 billion over seven years from 2027–28 to the Australian Renewable Energy Agency to supercharge ARENA’s core investments in renewable energy. 
  • $1.3 billion over ten years from 2024–25 for an additional round of the Hydrogen Headstart program to bridge the green premium for early-mover renewable hydrogen projects. 
  • $835.6 million over ten years from 2024–25 to establish the Solar Sunshot program. 
  • $566.1 million over ten years from 2024–25 for Geoscience Australia to map Australia’s national groundwater systems and resource endowments to increase industry investment. 
  • $523.2 million over seven years from 2024–25 to establish the Battery Breakthrough Initiative, administered by the Australian Renewable Energy Agency. 
  • $466.4 million for a financing package of equity and loans provided to PsiQuantum Pty Ltd to support the construction and operation of quantum computing capabilities. 
  • $448.7 million over 11 years from 2023–24 to establish Australia’s partnership with the United States on the next generation of the Landsat satellite earth observation program. 
  • $96.6 million over four years from 2023–24 for the Department of Climate Change, Energy, the Environment and Water to strengthen environmental approvals for renewable energy, transmission, and critical minerals project. 
  • $91 million over five years from 2023–24 (and an additional $600,000 over three years from 2028–29) to support the development of the clean energy workforce. 
  • $55.6 million over four years from 2024–25 to establish the Building Women’s Careers program to drive structural and systemic change in work and training environments. 
  • $54.7 million over two years from 2024–25 to administer, coordinate and promote the Government’s Future Made in Australia agenda. 
  • $38.2 million over eight years from 2023–24 to provide funding for a range of Science, Technology, Engineering and Mathematics (STEM) programs to increase diversity in STEM education and industries. 
  • $17.7 million over three years from 2024–25 to reduce the backlog and support administration of complex cultural heritage applications. 
  • $10 million over four years from 2024–25 for additional resourcing for the Australian Securities and Investments Commission (ASIC) to investigate and take enforcement action against market participants engaging in greenwashing. 

Housing Support

  • $423.1 million over five years from 2024–25 in additional funding to support the provision of social housing and homelessness services by states and territories under a new National Agreement on Social Housing and Homelessness. 
  • $88.8 million over three years from 2024–25 to support 20,000 new fee-free training places. 

Prime Minister and Cabinet

  • $839.4 million over five years from 2023–24 to accelerate housing delivery in remote Northern Territory communities and increase investment in homelands. 
    • $698.4 million over four years from 2024–25 to enter into a 10-year remote housing agreement with the Northern Territory Government to reduce overcrowding in remote Northern Territory communities. 
  • $777.4 million over five years from 2023–24 to establish the Remote Jobs and Economic Development Program, which will create 3,000 jobs in remote Australia and support income support recipients move into paid employment. 
  • $399.1 million over five years from 2023–24 in additional resourcing for the Net Zero Economy Authority. 
    • $44.4 million over four years from 2024–25 to deliver the Energy Industry Jobs Plan, to assist employees impacted by the closure of relevant coal-and gas-fired power stations to access new employment by supporting job and skills matching. 
  • $151.4 million over four years from 2024–25 to accelerate progress under the National Agreement on Closing the Gap. 
  • $60.1 million to enable the Department of the Prime Minister and Cabinet to support the Prime Minister and Cabinet to deliver on Government priorities, including national security and resilience, the care and support economy and to implement Working for Women: A Strategy for Gender Equality. 
  • $9.6 million over five years from 2023–24 in additional resourcing to further support informed policy advice to Government to end gender-based violence. 

Navigating the Budget Papers

Looking to go through the Budget Papers? Here’s a quick guide on where to go: 

  • Budget Overview: A summary of the Government’s key budget measures.  
  • Budget Speech: The Treasurer’s speech, as delivered to the Federal Parliament on Budget night. 
  • Budget Paper # 1 Budget Strategy and Outlook: Main Budget priorities, as well as the domestic and global economic and fiscal outlook. 
  • Budget Paper # 2 Budget Measures: Payment receipts, and expenditure measures, divided by portfolio areas.  
  • Budget Paper # 3 Federal Financial Relations: Federal government payments to states and territories. 
  • Budget Paper # 4 Agency Resourcing: Estimated spending by government on agencies (such as government departments), including financial resources, staff resources, expenses and net capital investment. 
  • Women’s Budget Statement: Overview of budgetary measures relating to gender equality.

If you have any queries or would like a briefing, please contact the Nexus team.

Photo Credit: (AAP Image/Mick Tsikas).