Billions in Cost-of-Living Relief Expected in Federal Budget

Next Tuesday’s federal budget is shaping up to be a big one, with a strong focus on cost-of-living relief as the government gears up for an election in May. While there have been fewer early announcements than usual, we now have a pretty good idea of what’s coming.

Here’s what’s on the table:

Major Bulk-Billing Boost & Cheaper Medicines

Healthcare is a huge focus this year, with two major policies already locked in:

• $8.5 billion Medicare boost – This means an extra 18 million bulk-billed GP visits each year, saving Aussies a combined $859 million annually by 2030.

• Cheaper PBS medicines – From January 1, 2026, the maximum cost of most prescription medicines will drop from $31.60 to $25, saving Australians $200 million a year.

Both of these policies have bipartisan support, so they’ll happen no matter who wins the next election.

Energy Bill Relief

Last year, households got a $300 energy rebate, and while the government hasn’t officially confirmed another round, the signs are there.

Energy Minister Chris Bowen hinted that something similar could be coming, especially after the national energy regulator approved price hikes of up to 9% from July 1.

PM Anthony Albanese also listed energy bill relief when asked about cost-of-living measures in the budget, so watch this space.

Boost for Aussie-Made Goods Amid Trump’s Tariffs

With Donald Trump’s new 25% tariffs on Australian steel and aluminium, the government is ramping up support for local manufacturers.

Rather than retaliating with tariffs of our own, Albanese has promised funding for a “Buy Australian” campaign and a revamped ‘Made in Australia’ Plan to help local businesses stay competitive.

Budget Deficit is Back

After two years of surpluses, the budget will return to deficit in 2025—but this was expected.

Last December, Treasury predicted a $26.9 billion deficit, and Chalmers has confirmed that number won’t change much. The main reason? Revenue from minerals and exports has dropped significantly since late 2022.

For context: 2023 and 2024 were the ONLY budget surpluses Australia has had since 2008.

Massive Student Debt Discount

If you’ve got a HELP/HECS student loan, here’s some good news:

On June 1, outstanding student debt will be slashed by 20%, wiping out a huge $16 billion in total.

That’s five times bigger than last year’s debt relief, and it’s already locked in as an election promise from Labor.

Subsidised Childcare for All

From January 1, 2026, if Labor wins the election:

• Three days a week of subsidised childcare for families earning up to $530,000 per year.

• Activity test scrapped, making it easier for low-income families to access cheaper childcare.

This will cost $427 million over five years and was a key recommendation from the Productivity Commission.

Other Budget Announcements

• $1 billion for early education centre upgrades.

• $1 billion for a Western Sydney rail link to the new airport.

• $30 million to restore Adass Israel Synagogue, plus $1.2 million for security upgrades.

This budget is all about cost-of-living relief, healthcare, and helping Australian businesses. With an election just weeks away, expect plenty more promises in the coming days!