Taxpayers will get two extra rounds of relief in a pre-election sweetener, as Jim Chalmers lays out the economic case for a second term of a Labor government.<\/p>\n
In his fourth federal budget handed down on Tuesday night, weeks before Australians go to the polls, the treasurer revealed the average earner would be $536 a year better off once the tax cuts are fully implemented.<\/p>\n
However, workers will have to wait more than a year before they get the first hit of additional hip-pocket relief.<\/p>\n
The first round will be from July 2026, with those on an average income (around $80,000) getting a $268 boost, with the second round coming in from July 2027.<\/p>\n
After the government’s 2024\/25 tax cuts are included, it’s estimated taxpayers will be more than $2500 a year – or about $50 a week – better off overall in 2027\/28.<\/p>\n
The cuts will cost $17 billion over the next four years, but Dr Chalmers said the first tax rate would be at its lowest level in more than 50 years.<\/p>\n
“These additional tax cuts are modest but will make a difference,” the treasurer said.<\/p>\n
The tax measures are among multiple cost-of-living measures that have been locked in by the government in a pitch to voters ahead of the federal election, due to be held in May.<\/p>\n
Dr Chalmers said the economy was “turning a corner” after previous years of high inflation, insisting better days were still to come despite global uncertainty.<\/p>\n
“The plan at the core of this budget is about more than putting the worst behind us. It’s about seizing the best of what’s ahead of us,” he said.<\/p>\n
“We’ve come a long way, but there’s more work to do. This budget is our plan for a new generation of prosperity in a new world of uncertainty. It’s a plan to help finish the fight against inflation.”<\/p>\n
The budget comes as Australia and other countries brace for further tariffs imposed by US President Donald Trump, after he already targeted steel and aluminium exports.<\/p>\n
A $20 million Buy Australia campaign will be set up in response to the tariff threat, which will encourage shoppers to buy local products.<\/p>\n
The treasurer said the budget was a “platform for prosperity in a world of uncertainty”.<\/p>\n
Among the cost-of-living measures already announced were a further $150 in power bill relief for households and one million small businesses, to be handed out in two lots of $75 rebates through to December, under an $1.8 billion package.<\/p>\n
Health measures have been reiterated through $7.9 billion to expand bulk billing to 90 per cent of GP appointments by 2030, and an extra $644 million to build more urgent care medical clinics.<\/p>\n
Scripts for medicines on the Pharmaceutical Benefits Scheme will also be capped at $25 for non-concession card holders.<\/p>\n
The low-income threshold for the Medicare levy has also been lifted by more than $1200 for singles and about $2700 for families.<\/p>\n
Student loans would also be cut by 20 per cent for all three million people with a HECS debt, which would wipe $16 billion from all balances.<\/p>\n
From July, students can also earn more before they would have to repay their remaining debt, with the threshold rising from just over $54,000 to $67,000.<\/p>\n
The budget also included funding for the consumer watchdog to crack down on misleading conduct by major supermarkets, with more than $38 million set aside.<\/p>\n
An extra $240 million will also be spent for states and territories to relax planning laws to allow more supermarkets to open and increase competition in the sector.<\/p>\n
First home-buyers will also be helped through an $800 million expansion of the Help to Buy scheme, which allows people to purchase a property with a lower deposit.<\/p>\n
The government will set aside almost $6 million to enforce a ban of foreign buyers purchasing a home in Australia for two years, which starts in April.<\/p>\n
FEDERAL BUDGET WINNERS AND LOSERS<\/strong><\/p>\n WINNERS<\/strong><\/p>\n * Taxpayers: All taxpayers will get tax cuts in July 2026 and July 2027, taking the average total to an extra $50 a week after this year’s tax cuts are included<\/p>\n * University students: Students with a HECS debt will have 20 per cent of their loan cut, wiping $16 billion from all balances<\/p>\n * First-home buyers: The Help to Buy equity scheme, which allows buyers to purchase a home with a lower deposit, will have caps expanded to make it more accessible<\/p>\n * Workers looking to change jobs: Employees earning less than $175,000 won’t be subjected to non-compete clauses<\/p>\n * Aged care staff: $2.6 billion is set aside in the budget for a pay rise for aged care nurses<\/p>\n * Parents: Mums and dads with kids in childcare will save more than $4000 in fees each year as the government aims to set up universal access<\/p>\n * Beer drinkers: The government will pause indexation of the excise of draught beer for two years from August<\/p>\n