FEDERAL BUDGET 2025-26: REPAIR, RELIEF, AND REFORM

‘This Budget is our plan for a new generation of prosperity in a new world of uncertainty’: Treasurer, the Hon Dr Jim Chalmers MP. 

This evening, the Albanese Government delivered its fourth Federal Budget since assuming office in 2022, promising responsible cost-of-living relief.  

After delivering consecutive budget surpluses for the first time in a decade, the Albanese Government has presented a budget in deficit, with expectations that the deficit will continue for the next decade. 

The 2025-26 Budget contains five main priorities:

1. Helping with the cost of living; 
2. Strengthening Medicare; 
3. Building more homes; 
4. Investing in every stage of education; and 
5. Making our economy stronger, more productive and more resilient. 

In his Federal Budget Speech, Treasurer, the Hon Dr Jim Chalmers MP, advised that the 2025-26 Budget is a strategic plan to support Australians with cost-of-living pressures while fostering economic resilience and future growth. The Budget prioritises immediate relief through tax cuts, energy rebates, and cheaper healthcare, alongside long-term investments in housing, education and a Future Made in Australia.  

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

Health and Aged Care

This Budget introduces a range of key initiatives and measures for the Health and Aged Care Portfolio. The Government has structured its Health and Aged Care Budget around five central themes: 

1. Strengthening Medicare; 
2. Making healthcare more accessible;
3. Better healthcare for women;
4. Investing in First Nations communities; and
5. Supporting wellbeing. 

Strengthening Medicare 

• $7.9 billion to expand eligibility for bulk billing incentives to all Australians and introduce the new Bulk Billing Practice Incentive Program for general practices if they bulk bill every visit under Medicare.  

Making Healthcare More Accessible 

• $32.2 billion in 2025-26 for Commonwealth funding under the National Health Reform Agreement. 
• $1.8 billion as a one-off funding boost to fund public hospitals and health services in 2025-26, including an uplift to the Northern Territory to better align the Commonwealth contribution rate.  
• $662.6 million to continue to strengthen and support Australia’s health workforce. 
• $657.9 million to establish a further 50 Medicare Urgent Care Clinics across the country, with new clinics in every state and territory, bringing the total number of Medicare Urgent Care Clinics to 137. 

Better Healthcare for Women 

• $792.9 million package to improve healthcare access and affordability for Australian women, including a new Medicare rebate for menopause health assessments, national treatment guidelines, health professional training, an awareness campaign, and the first PBS listing of new menopausal hormone therapies in over 20 years. 

Investing in First Nations Communities 

• $70.9 million boost to the Indigenous Business Australia’s Home Loan Capital Fund to increase opportunities for First Nations Australians to buy their own home and build intergenerational wealth. 
• $23.9 million to strengthen the Indigenous Procurement Policy.  
• $3.4 million to establish a place-based business coaching and mentoring program for First Nations businesswomen and entrepreneurs.  

Supporting the Wellbeing of all Australians 

• $17.7 billion to support award wage increases for aged care workers, including $2.6 billion in this Budget to deliver another pay rise for aged care nurses.  
• $1.1 billion in funding, including a further $46.7 million in this Budget to the Department of Veterans’ Affairs to ensure it continues to be appropriately resourced.  
• $423.8 million to support people with disability including $364.5 million to reform the Information Linkages and Capacity Building program.  
• $291.6 million to continue delivering its historic aged care reforms and implementation of recommendations from the Royal Commission into Aged Care Quality and Safety. 
• $42.2 million to deliver the National Autism Strategy. 
• $17.1 million to establish the Accessible Australia program to increase inclusion through accessible public infrastructure. 

Additional health measures include 

• $784.6 million (and $236.4 million per year ongoing) to lower the Pharmaceutical Benefits Scheme (PBS) general patient co-payment from $31.60 to $25.00 on 1 January 2026. 
• $539.4 million to establish the First Pharmaceutical Wholesalers Agreement with the National Pharmaceutical Services Association to ensure medicines remain accessible across Australia. 
• $46.0 million to continue digital mental health services. 
• $22.9 million over five years to address intravenous (IV) fluids shortages by expanding onshore IV fluid production capacity, establishing a panel of suppliers for IV fluids, and undertaking a clinical review of IV fluids. 
• $17.3 million over three years from 2025–26 to provide affordable access to Medicare-eligible Magnetic Resonance Imaging (MRI) services at three metropolitan locations with below average bulk-billed MRI services, pending MRI licencing requirement changes commencing 1 July 2027. 
• $10.0 million in 2027–28 to review pharmaceutical wholesaling arrangements to ensure they remain fit for purpose. 

Defence

The Budget includes the following measures for Defence: 

• The Government will provide $61.7 million in 2025–26 to continue to provide regulatory, safety and policy advice in support of Australia’s acquisition of a conventionally-armed, nuclear-powered submarine capability. Funding includes:  
  • $28.0 million in 2025–26 for the Department of Foreign Affairs and Trade to provide international policy advice and diplomatic support for the nuclear-powered submarine program. 
  • $11.1 million in 2025–26 for the Australian Safeguards and Non-Proliferation Office to continue the development of non-proliferation and safeguard arrangements with the International Atomic Energy Agency. 
  • $6.9 million in 2025–26 for the Australian Radiation Protection and Nuclear Safety Agency to conduct nuclear licencing activities and provide protection and safety advice and services. 
• $47.6 million in 2025–26 to address the additional increased demand for downstream services following the increase in the determination of veterans’ claims. This includes additional resourcing for the Veterans’ Access Network, Veteran Support Officers, complex case management, information access and mental health support. 
• $24.2 million over two years from 2024–25 for the development of industrial initiatives to support the 2024 Naval Shipbuilding and Sustainment Plan and Australia’s ability to build, sustain and operate maritime capability. 
• $17.0 million over two years from 2024–25 to continue to support the Government of Ukraine, including through the provision of communication systems, artillery components, firearms and other equipment. 
• $11.9 million in 2025–26 to continue to support veterans and their families. Funding includes:  
  • $5.6 million in 2025–26 to extend the Defence Kids Program run by the Australian Kookaburra Kids Foundation for one year to 30 June 2026. 
  • $3.3 million in 2025–26 to extend grant funding for Invictus Australia for one year to 30 June 2026. 

Industry, Science and Resources

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

• $3.2 billion over 19 years to invest in the future of Australia’s metals industry. Funding includes: 
  • $2.0 billion over 19 years from 2024–25 for Green Aluminium Production Credits to provide production-based grants to support Australian aluminium smelters switching to renewable electricity before 2036. 
  • $1.0 billion over seven years from 2024–25 for the Green Iron Investment Fund to fund green iron projects through capital grants to support producers to establish or transition into low emissions facilities in Australia, including up to $500 million earmarked to transform the Whyalla Steelworks. 
• $55.0 million over four years from 2025–26 to maintain the research capability of the Commonwealth Scientific and Industrial Research Organisation. 
• $47.9 million in 2025–26 as Australia’s contribution to address funding shortfalls for the Square Kilometre Array (SKA) project. 
• $34.0 million in 2025–26 for the National Measurement Institute to address critical remediation works and sustain operations. 

Climate Change, Energy, the Environment and Water

In investing in Australian Climate Change, Energy, the Environment and Water, the Albanese Government has prioritised the following measures: 

• The Government will provide $2.0 billion to recapitalise the Clean Energy Finance Corporation to invest in renewable energy, energy efficiency and low emissions technologies. 
• $212.0 million over four years from 2025–26 (and an additional $50.0 million in 2029–30) to protect more of Australia’s natural environment and to help meet the Government’s commitment to protect 30 per cent of Australia’s landmass and territorial waters by 2030. Funding includes:  
  • $200.0 million over four years from 2025–26 (and an additional $50.0 million in 2029–30) for the Saving Australia’s Bushland program to provide better pest management and incentives for private land conservation, increasing partnerships with state and local governments to expand protected areas, and establish new Indigenous Protected Areas. 
  • $12.0 million over four years from 2025–26 to build on the Government’s investment to deliver increased ocean protection. 
• $87.7 million over three years from 2025–26 to deliver new water infrastructure projects. Funding includes:  
  • $87.5 million over three years from 2025–26 in additional funding for the Cairns Water Security Project in Queensland to secure long-term water security for Cairns. 
  • $0.2 million in 2025–26 to provide rainwater tanks for the remote First Nations community of Truwana / Cape Barren Island in Tasmania. 
• $55.2 million over four years from 2025–26 (and $14.1 million per year ongoing) to renew lease arrangements with the Traditional Owners of the jointly managed Booderee, Kakadu, and Uluru-Kata Tjuta National Parks.  
• $3.0 million over three years from 2025–26 for the Maugean skate captive breeding program to support the increasing number of baby Maugean skates following successful breeding in captivity. 

Infrastructure, Transport, Regional Development, Communications and the Arts

The Government will provide $17.1 billion over ten years from 2024–25 for road and rail infrastructure priorities to support productivity and jobs. Funding includes: 

• $15.6 billion over ten years from 2024–25 for new Infrastructure Investment Program projects across Australia, including: 
  • $7.2 billion for safety upgrades on the Bruce Highway in Queensland. 
  • $2.0 billion to upgrade Sunshine Station and $1.0 billion for the Road Blitz in Victoria. 
  • $2.8 billion for projects in New South Wales, including $115.0 million to upgrade Terrigal Drive and the following projects in Western Sydney: $1.0 billion to preserve the corridor for the South West Sydney Rail Extension, $580.0 million for upgrades to Townson Road, Burdekin Road and Garfield Road West to support housing growth and flood resilience and $500.0 million to upgrade Fifteenth Avenue. 
  • $350.0 million to upgrade the Kwinana Freeway in Western Australia. 
  • $200.0 million for upgrades to the Arthur Highway and $80.0 million for the Southern Outlet Transit Lane Extension in Tasmania. 
  • $200.0 million for the duplication of the Stuart Highway (Darwin to Katherine) in the Northern Territory. 
  • $125.0 million for the Curtis Road Level Crossing Removal in South Australia. 
  • $20.0 million for Monaro Highway Upgrade Stage 2 planning works in the Australian Capital Territory. 
• An equity investment of $3.0 billion over seven years from 2024–25 to NBN Co to upgrade the remaining 622,000 National Broadband Network (NBN) premises on the national fibre-to-the-node (FTTN) network with NBN Co also contributing more than $800 million to the project. 
• $1.5 billion over eight years from 2024–25 for existing Infrastructure Investment Program projects or corridors, including: 
  • $1.1 billion for the Western Freeway in Victoria. 
  • $200.0 million for the Rockhampton Ring Road in Queensland. 
  • $50.0 million for Homebush Bay Drive in New South Wales. 
  • $30.0 million for the Monaro Highway Upgrade in the Australian Capital Territory. 
• $49.6 million over five years from 2024–25 to support transport priorities. Funding includes: 
  • $32.7 million in 2025–26 to support ongoing safety and regulatory services provided by the Australian Maritime Safety Authority, the Australian Transport Safety Bureau and the Civil Aviation Safety Authority. 
  • $16.9 million over five years from 2024–25 to establish a maritime internship program to support seafarer certification and expand activities under the Transport and Logistics Jobs and Skills Council to support the Strategic Fleet and skills development in the maritime sector. 

Social Services

This Budget outlines the following measures for Social Services: 

• $423.8 million over five years from 2024–25 (and $150.0 million per year ongoing) to support inclusion and build the capacity of people with disability and their families through improving accessibility, delivery of inclusive community services, and general understanding of disability. Funding includes: 
  • $364.5 million over five years from 2024–25 (and $150.0 million per year ongoing) to redesign the Information, Linkages and Capacity Building program to provide general supports for people with disability and their families, carers and kin, improving consistency, quality and national coverage, as envisaged by the Independent Review of the National Disability Insurance Scheme. 
  • $42.2 million over five years from 2024–25 (and an additional $0.1 million from 2029–30 to 2031–32) to deliver the National Autism Strategy and implement the Strategy’s First Action Plan. 
• $175.4 million over four years from 2025–26 (and $43.8 million per year ongoing) to further safeguard the integrity of the National Disability Insurance Scheme (NDIS) and support people with disability. Funding includes: 
  • $151.0 million over four years from 2025–26 (and $43.8 million per year ongoing) to continue enhancements to the National Disability Insurance Agency’s (NDIA’s) fraud detecting information technology systems. 
  • $17.1 million in 2025–26 to continue to invest in the NDIA’s ability to detect and respond to fraud and non-compliant payments. 
  • $7.3 million in 2025–26 to extend supplementary funding for the NDIS Appeals Program. 
• $8.9 million over three years from 2025–26 to improve and expand support services for vulnerable Australians, including Australians experiencing housing insecurity and family, domestic and sexual violence. 

Treasury

The following budget measures are included for Treasury: 

• $1.8 billion over two years from 2025–26 to continue energy bill rebates of $75 per quarter for eligible Australian households and small businesses until 31 December 2025. 
• $0.8 billion in additional investment in the Help to Buy program, bringing total equity investments to $6.3 billion. 
• A loan of $570 million to the Government of Papua New Guinea (PNG) to address the PNG Government’s estimated 2024 budget shortfall. 
• $219.2 million over four years from 2025–26 to support the delivery of Government priorities in the Treasury portfolio, including: 
  • An increase in the cap on the Commonwealth’s guarantee of Housing Australia’s liabilities from $10 billion to $26 billion including support for commitments for projects under the Housing Australia Future Fund and the National Housing Accord Facility. 
  • $207.0 million over two years from 2025–26 to deliver the second tranche of stabilisation and uplift of the Australian Securities and Investments Commission’s business registers. 
  • $4.6 million over four years from 2025–26 to continue the National Housing Delivery Coordinator. 
• $58.8 million over five years from 2024–25 to increase support for housing, including: 
  • $54.0 million over four years from 2024–25 to increase the supply and adoption of prefabricated and modular housing construction. 
  • $49.3 million over two years from 2025–26 to support states and territories to scale up existing projects for prefabricated and modular housing construction. 
  • $4.7 million over four years from 2024–25 to develop a voluntary certification and rating scheme for prefabricated and modular housing manufacturers.  
  • $4.9 million over four years from 2025–26 to continue the Regional Home Guarantee and Family Home Guarantee streams of the Home Guarantee Scheme. 

Agriculture, Fisheries and Forestry

The Government will provide $45.2 million over three years from 2025–26 to support priorities in the Agriculture, Fisheries and Forestry portfolio. Funding includes:  

• $23.8 million over three years from 2025–26 to sponsor agricultural trade events. 
• $11.0 million in 2025–26 to continue efforts to reduce the economic and environmental burden of established feral animals, pests and weeds. 
• $6.8 million in 2025–26 for the Department of Agriculture, Fisheries and Forestry to sustain non-regulatory agricultural export and trade functions, including international engagement in multilateral forums and technical market access services. 
• $3.5 million over two years from 2025–26 to develop a National Food Security Strategy. 

Education

Key education initiatives featured in this Budget include: 

• $407.5 million over four years from 2025–26 (and $7.2 billion from 2029–30 to 2035–36) to jurisdictions which have signed Better and Fairer Schools Agreement (Full and Fair Funding 2025–2034) Bilateral Agreements. 
• $11.5 million over four years from 2025–26 to support early childhood education and care and improve educational outcomes in Australian schools. Funding includes: 
  • $4.5 million over four years from 2025–26 to Services Australia to make system changes to ensure consistency with the passing of recent legislation to implement the Child Care Subsidy 3 Day Guarantee. 
  • $2.2 million in 2025–26 to extend the Australian Academy of Science school Science Technology, Engineering and Mathematics (STEM) programs to boost the confidence and capability of STEM teachers and support students studying STEM. 
  • $1.5 million in 2025–26 to extend the Let’s Count program, delivered by The Smith Family, to build the capacity of educators and parents to improve the mathematical capabilities of preschool children and support their successful transition to school. 
  • $1.2 million in 2025–26 to extend the Commonwealth Scientific and Industrial Research Organisation STEM Professionals in Schools program to support partnerships between schools and industry by connecting teachers with STEM professionals, and giving schools, teachers and students insights into contemporary experiences and advancements in STEM.  

Cross Portfolio

The Budget contains the following Cross Portfolio measures: 

• The Government will provide $506.4 million over five years from 2024–25 (and an additional $12.3 million in 2029–30) to achieve better outcomes for First Nations people under the National Agreement on Closing the Gap. Funding includes:  
  • $137.3 million over three years from 2024–25 to support the transition between the Community Development Program and the new remote employment service for a four-month period to 31 October 2025. 
  • $50.0 million over four years from 2025–26 to provide access to low-cost products for remote stores, ease cost-of-living pressures and improve food security in remote communities. 
  • $36.7 million over four years from 2025–26 (and an additional $4.5 million in 2029–30) for Stage 7 of the Major Infrastructure Programme, to construct and upgrade infrastructure for essential services related to wastewater, solid waste management and potable water supply in remote First Nations communities across the Torres Strait region. 
  • $33.6 million over two years from 2025–26 to extend the Clontarf Foundation program for the 2026 school year to support school engagement for First Nations young men. 
• The Government will provide $156.7 million over two years from 2025–26 to strengthen compliance and enforcement action in relation to the trade of illicit tobacco and nicotine products. Funding includes:  
  • $49.4 million over two years from 2025–26 to increase the capacity of the Australian Federal Police-led Criminal Assets Confiscation Taskforce to investigate and prosecute serious and organised crime groups dealing in illicit tobacco and nicotine products. 
  • $40.0 million over two years from 2025–26 to support states and territories to establish local level capability to respond to their own unique compliance and enforcement challenges, and strengthen regulatory authorities’ cross-jurisdictional tactical partnerships for enforcement capacity. 
  • $31.6 million over two years from 2025–26 to strengthen monitoring, compliance and enforcement activities under the Public Health (Tobacco and Other Products) Act 2023 and the Therapeutic Goods Act 1989.  

Prime Minister and Cabinet

The following measures are included for Prime Minister and Cabinet: 

• $842.6 million over six years from 2025–26 for a six-year National Partnership on Northern Territory Remote Aboriginal Investment (Partnership) with the Northern Territory Government and Aboriginal Peak Organisations Northern Territory.
• $44.6 million over four years from 2025–26 (and $3.8 million per year ongoing) for measures in response to the recommendations of the 2024 Independent Intelligence Review. Funding includes: 
  • $29.8 million over two years from 2025–26 to increase the capacity of the Office of National Intelligence to support initial implementation of key priorities identified in the Government Response to the 2024 Independent Intelligence Review.  
  • $14.8 million over four years from 2025–26 (and $3.8 million per year ongoing) to continue and enhance the National Intelligence Academy to improve the capability and connectivity of the National Intelligence Community through the delivery of training on intelligence skills. 
• $20.0 million in 2025–26 to the Department of the Prime Minister and Cabinet for initiatives to encourage consumers to buy Australian-made products. 
• $10.0 million in 2025–26 for the National Australia Day Council to continue to deliver community grants for Australia Day events. 

Home Affairs 

The Budget introduces the following measures for Home Affairs: 

• $178.4 million over five years to support social cohesion in Australia, including funding for multicultural community projects, a centralised sports and education hub, and support for independent multicultural media outlets. Specific initiatives include: 
  • $44.8 million over five years from 2024–25 for projects under the Critical Support for Multicultural Communities Grant Program. 
  • $31.4 million over four years for the restoration of the Adass Israel Synagogue and community centre in Ripponlea, Victoria, the restoration of Torah Scrolls and security upgrades following the December 2024 firebombing. 
• $84.5 million over four years to support Australia’s border security including strengthening enforcement against illegal fishing in northern waters and enhancing sea cargo screening technology. 
• $28.8 million over two years to improve Australia’s resilience to natural hazards and preparedness to respond to disasters. 

Foreign Affairs and Trade 

The Budget includes the following measures for Foreign Affairs and Trade: 

• $164.6 million over four years to support growth in Royal Solomon Islands Police Force to build Solomon Islands’ ability to meet its security needs. 
• $36.0 million over five years (and $7.8 million per year ongoing) for the Australian Embassy in Kyiv, returning diplomatic and consular services to Ukraine.  
• $20.0 million over five years to support increase economic engagement with India.  
• $3.8 million over five years to support Giant Pandas at Adelaide Zoo. 

Employment and Workplace Relations 

The Employment and Workplace Relations portfolio will receive funding for the following initiatives: 

• $722.8 million over four years from 2025–26 to deliver increased support for apprentices. Funding includes: 
  • $626.9 million over four years from 2025–26 to reframe the New Energy Apprenticeships Program as the Key Apprenticeship Program and expand it to capture critical residential construction occupations. 
  • $77.8 million over four years from 2025–26 to extend the current interim Australian Apprenticeship Incentive System program settings for a further six months from 1 July 2025 to 31 December 2025. 
  • $11.0 million over four years from 2025–26 to increase the Disability Australian Apprentice Wage Support subsidy. 
• $6.0 million over four years from 2025–26 to address critical integrity issues and extend support for retrenched workers. 

Attorney-General’s 

Key budget measures for the Attorney-General’s portfolio include: 

• $194.5 million over five years from 2024–25 (including $41.6 million in capital funding over three years from 2025–26) to support the delivery of Government priorities in the Attorney-General’s portfolio, including:  
  • $54.4 million in 2025–26 to continue the work of the Office of the Special Investigator to investigate and support the prosecution of war crimes alleged to have been committed by the Australian Defence Force in Afghanistan. 
  • $51.3 million in 2025–26 to sustain the operational activities of the Australian Criminal Intelligence Commission and enhance core capabilities to disrupt transnational, serious and organised crime. 
  • $38.2 million over four years from 2025–26 (and $2.4 million per year ongoing) to the Australian Federal Police for the fit-out and sustainment of shared Commonwealth facilities at Western Sydney International (Nancy-Bird Walton) Airport to support federal policing required to enable airport operations. 
• $21.2 million in 2025–26 to the Attorney-General’s Department, National Indigenous Australians Agency, Australian Federal Police, Australian Communications and Media Authority, Australian Institute of Criminology and Department of the Treasury to continue initiatives to prevent, disrupt and combat child sexual abuse, and maintain support services for victims and survivors of child sexual abuse. 
• $21.4 million over three years from 2025–26 to improve victim and survivor engagement in the justice system and inform a broader response to the Australian Law Reform Commission’s (ALRC) Inquiry into the Justice System’s Response to Sexual 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 APAC team.