As with most budgets in the modern era, several budget measures have already been announced.
These include:
- An $8.5 billion injection to Medicare to increase bulk billing, also providing incentives to doctors to provide “near-universal” bulk billing by 2030.
- An ongoing $150 in energy bill relief for all Australian households and around one million small businesses until the end of 2025. This halves the $300 rebate announced in the previous budget.
- Changes to the help to buy scheme housing scheme, where homebuyers purchase a property with the government, to include people on higher incomes and those purchasing more expensive homes.
Return to budget deficit
The Albanese Government has already acknowledged the budget will be in deficit, which means government spending will be more than what’s coming in.
In fact, this budget will end the brief run of two back-to-back budget surpluses under the Albanese Government, with Treasury itself forecasting it may be a decade before Australia sees another budget surplus.
It’s certainly not a budget the government wanted to deliver in the lead-up to the federal election which must be held before 17 May.
But Cyclone Alfred scuttered the government’s plans to call an April election, leaving Treasurer Jim Chalmers with little choice but do his best to sell his numbers.
Still, with the election looming, we can be sure there will be some loose cash hidden in the budget detail that the government will whip out for pre-election sweeteners.
These are often referred to as ‘decisions taken but not yet announced’.
What are some election-dependent cost-of-living measures?
In practical terms, nearly all budget measures will depend on the current government being re-elected.
However, the federal opposition has pledged to match some of the government’s spending plans if it wins power, including the Medicare measures and energy rebates.
Another measure the opposition promises to honour is the government's plan to reduce the maximum cost of Pharmaceutical Benefit Scheme (PBS) medicines to $25, down from $31.50, from January 2026.
Here are other announced cost-of-living relief measures that will rely on the current government being returned to power:
- A 20% reduction in student debts
- Subsidised childcare guaranteed for a minimum three days a week for all parents, regardless of whether they are working or studying
Be sure, there will other such vote-winning measures announced during the election campaign, widely tipped to begin this weekend (if not, next weekend).
What else will be in the budget?
Other themes the government has foreshadowed will be:
- $1.2 billion to contribute to the clean-up bill of Cycle Alfred in south-east Queensland
- Funds allocated to a ‘Buy Australian” push in the face of US President Donald Trump’s trade tariffs and ongoing trade policy.
Commentators expect this year’s pre-election budget is expected to be particularly boring as many of the big announcements are likely to be held back for Prime Minister Anthony Albanese to make during the election campaign.
But if you're at a loose end on Tuesday night, you can watch the budget being handed down at prime time on the public broadcaster at 7:30 pm eastern daylight saving time.
And if you still want more, the Opposition Leader Peter Dutton will have his turn to deliver the Coalition's reply to the budget on Wednesday night.
Of course, Savings.com.au will have analysis and details for what the budget will deliver to everyday Australians as it's being handed down.
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