As we approach the federal election, the government is going to unveil a budget packed with significant funding commitments across healthcare, education, housing, and national security. These measures aim to address cost-of-living pressures while strengthening key industries and infrastructure.
Healthcare: Boosting Medicare, Urgent Care Clinics, and Cheaper Medicines
The government is increasing Medicare payments, with standard consultation fees rising based on location—from $42.85 to $69.56 in metropolitan areas and up to $86.91 in remote regions. A total of $5.4 billion has already been allocated to this measure.
An additional $644 million will fund 50 new bulk-billed urgent care clinics, expected to open by mid-2026. Once operational, 80% of Australians will be within a 20-minute drive of one of these facilities.
To lower prescription costs, the government has allocated $689 million over four years to reduce the cost of most Pharmaceutical Benefits Scheme (PBS) medicines. If re-elected, four out of five medications will be capped at $25 per script, down from $31.60—a change expected to save Australians $200 million per year. Pensioners will continue paying $7.70, with this price locked until 2030.
Additionally, $573 million is set aside for women’s health, focusing on reproductive health and menopause support.
Education: HECS-HELP Debt Reduction and Free TAFE Places
The government is delivering a 20% reduction in HECS-HELP debts, meaning a graduate with an average debt of $27,600 will have $5,520 removed from their loan. This, combined with changes to repayment thresholds, will cost the budget over $500 million.
To boost vocational education, 100,000 fee-free TAFE places will be offered annually, with a commitment to making the scheme permanent nationwide.
Housing: Social Housing and the ‘Help to Buy’ Scheme
With Australia’s housing crisis deepening, the government has committed $9.2 billion over a decade to increase social and affordable housing.
The “Help to Buy” scheme will allow homebuyers to co-purchase a property with the government, reducing their mortgage and deposit requirements. Under this scheme, the government would own 30% of an existing home or 40% of a new build, which buyers can gradually buy out. The expansion of this scheme will cost an extra $800 million, bringing total funding to $6.3 billion.
Childcare: Expanded Subsidies and New Centres
From January next year, all families earning under $533,280 will be eligible for three days of subsidised childcare per week, regardless of work or study commitments. The activity test requirement, introduced in 2018, has been scrapped.
In its first full year, 66,700 families will benefit from this guarantee, with 100,000 more qualifying for additional care hours. The government is also creating a $1 billion fund to construct 160 new childcare centres in high-demand areas.
Cyclone Alfred Recovery: Disaster Relief Funding
The economic impact of Ex-Tropical Cyclone Alfred, which devastated southeast Queensland and northern NSW in March, is projected to shave 0.25% off GDP for the first quarter of 2025. The clean-up alone will cost $1.2 billion, adding to the $11.6 billion already earmarked for disaster recovery.
Aviation: Potential Government Takeover of Regional Express (Rex)
The government is prepared to buy out Regional Express (Rex) if administrators fail to secure a buyer by the June deadline. After entering voluntary administration in July 2024, Rex received $80 million in government assistance and later became government-owned in January 2025 after Canberra acquired $50 million of its debt. If no private buyer emerges, Rex would be the first nationally owned airline in three decades.
Industry and Infrastructure: Green Aluminium, Steel, and Highway Upgrades
A $2 billion production credit scheme aims to establish a green aluminium industry, incentivising manufacturers to use renewable energy.
The government is also investing $2.4 billion to support Whyalla Steelworks, which entered administration in early 2025.
Infrastructure funding includes $7.2 billion for Bruce Highway upgrades in Queensland, with 80% of costs covered by federal funds.
US Tariffs and Economic Impact
Former US President Donald Trump’s 25% tariffs on Australian steel and aluminium, taking effect on 1 April, will cost Australia’s economy an estimated $3 billion (0.1% of GDP) by 2030. The government is considering further “Made in Australia” policies to counteract these economic pressures.
Defence and National Security: AUKUS, Long-Range Missiles, and Spy Agencies
The budget includes an extra $10.6 billion for defence over four years, bringing forward $1 billion in new spending.
Key measures include:
• $650 million to stockpile long-range missiles
• $272 million for Australian-made military radars
• $262 million for AUKUS submarine supply chains
• $45 million for intelligence and spy agencies
Beer Tax Freeze: A Win for Brewers and Hospitality
In a move aimed at supporting small businesses, the government will freeze draught beer excise indexation for two years from August, costing the budget $200 million. Tax relief measures will also benefit Australian brewers, distillers, and winemakers.
Election Timing and Legislative Uncertainty
The government is prioritising the $150 energy bill relief package, aiming to pass it through parliament this week. However, many of the budget’s larger commitments will depend on re-election, with the latest possible date for the election call being 14 April.
If re-elected, these policies could significantly shape Australia’s economic landscape. However, if the opposition wins, an alternative budget approach may emerge, making this election one of the most financially consequential in years.
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