You’ve probably seen the words ‘federal budget’ splashed across headlines recently, with Treasurer Jim Chalmers delivering his fourth budget on Tuesday night. Now we wouldn’t blame you if all the hype has left you wondering what’s the big deal or, more specifically, how any of this affects you.
Last week, we asked our Instagram followers what they wanted to see in the budget. The majority of you asked for a simple explainer (so fair), and so we delivered!
Consider this your guide to understanding what a budget actually is, and what you should look out for in the 2025 one.
What is the Federal Budget and why does it matter?
In pretty simple terms, think of it like a household budget on a much larger scale. It’s the government’s plan for how they intend to collect money (think taxes like personal income, GST, and company taxes) and how they will spend it on key areas like Medicare, defence, social welfare, and education, to name a few.
When a government has a ‘surplus’ — which it has had for the last two budgets — this means it has earned more than it spent. But when a government goes into a deficit, like we can expect this year, it means the government has spent more than it earned. Last week, Chalmers indicated he will unveil a deficit close to the $26.9 billion.
The decisions announced on Tuesday will affect anyone living in Australia in one way or another, so it’s understandable that all eyes are on this upcoming announcement. It’s also bound to affect people differently, so expect to see plenty of ‘winners and losers’ lists over the next few days.
Another key reason to keep track of this budget is, in the lead up to the federal election, it provides a map of the government’s priorities — and thus could play a major role in determining how people vote.
In the spirit of this, there will also be a budget reply from Opposition leader Peter Dutton, who will outline the Coalition’s priorities in a speech on Thursday.
Why are we having a budget announcement now?
TBH this particular budget came as a bit of a surprise for punters, who were waiting on Prime Minister Anthony Albanese to announce the upcoming federal election. ICYMI, the federal election needs to be held on or before May 17, and there needs to be at least 33 days between calling an election and holding it.
Many had April 12 earmarked as election day (you can read more on why that is here).
Now if we work backwards, an early election date of April 12 would’ve meant the March 25 date budget announcement would be skipped. Why? Because the major parties would be hitting the campaign trail.
But the arrival of ex-Tropical Cyclone Alfred delayed a potential election announcement and thus, Budget Night’s back on the table.
What measures have been announced so far?
Given the somewhat surprising nature of this year’s budget, there have been fewer early announcements than previous years on what we could expect. But there’s still plenty to chew on.
Healthcare funding has been making headlines in recent weeks and you could expect to see this reflect in the budget numbers. Last week, the Albanese government confirmed a $689 million plan to ensure the maximum amount patients would pay for certain prescription medicines will be reduced from $30 to $25 from January 1.
It also made a $8.5 billion pledge last month to boost Medicare funding and has committed $573.3 million to women’s health if elected.
Tackling student debt is also in the picture, with the government pledging to reduce debts by 20 per cent if elected at a budget cost of over $500 million.
In terms of cost-of-living, we can expected energy rebates to be extended after Chalmers confirmed a further $150 discount applied across quarterly instalments. He also said the budget will contain another round of “meaningful and substantial” cost-of-living relief, stressing it will be done “responsibly”, per ABC News.
Other significant announcements so far include $30 million for the restoration of Melbourne’s Adass Israel Synagogue which was firebombed last year and $800 million to expand the eligibility criteria for the Help to Buy shared equity housing scheme.
It’s worth noting the Coalition has pledged to match a number of these announcements dollar-for-dollar, meaning we’ll be keeping a close eye on where the major parties diverge in their policies.
When and where can you watch the budget announcement?
The Treasurer will hand down the government’s latest budget on Tuesday, March 25.
His speech will be broadcast live from Parliament House at approximately 7.30pm AEDT for the ACT, NSW, Victoria and Tasmania.
Timings will differ in other states, namely Queensland (6.30 pm), Northern Territory and South Australia (7pm) and Western Australia (4.30pm AWST).
In case you’re keen to catch the speech live, you can tune into the broadcast on ABC TV and ABC News Channel.
And if you’re extra curious about the budget papers, you can log on to the government’s 2025-26 budget website, which will update shortly after the Treasurer begins his speech.
Happy (almost) Budget Night, y’all!!
Lead image: Getty
The post 3-Min Explainer: What Is A Federal Budget & Why Should You Care About The 2025 One? appeared first on PEDESTRIAN.TV .
