Chalmers delivers 2025 budget speech

The Guardian

25-03-2025

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6.35am EDT 06:35 What we learned, Tuesday 25 March (budget day)
For a budget we thought we were skipping due to the election, it's been somewhat eventful. Here's what made the headlines: The Albanese government announced a tax cut 'top up' as the centrepiece of its pre-election budget. It will give the average worker about $538 extra in their pay packets per year from mid-2027. You can read all about that here.
The Coalition has said it won't back Labor's tax cuts but refuses to say whether it will be announcing any income tax cuts of their own.
Treasurer Jim Chalmers says the budget is 'responsible' and his tax cuts are fiscally responsible.
There's been plenty of reaction so far, some positive, some not so much. The ACTU has welcomed the tax cuts and ban on non-compete clauses, while the business council has supported the cuts but said the government should have done more to boost the private sector.
And earlier today there were some dramatic scenes around parliament over the government's last-minute legislation to protect the salmon industry in Tasmania (a bill which environmentalists say will further harm an endangered species of fish – the Maugean skate). They passed the House about 6pm.
Thank you so much for joining me on the blog this evening, I'll be back for more with you bright and early tomorrow morning (with plenty of caffeine) for more action from Parliament House.
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6.25am EDT 06:25
Psychiatrists say no meaningful investment to solve workforce crisis
The nation's peak body for psychiatrists has expressed its disappointment in this budget being no difference from previous ones in offering the mental health system 'crumbs'.
Dr Elizabeth Moore, the president of the Royal Australian and New Zealand College of Psychiatrists (RANZCP), said:
The word 'psychiatry' has only been mentioned once in tonight's budget papers to refer to a pre-existing program. There has been no meaningful investment in growing the psychiatry workforce.
It is particularly striking – especially as workforce shortages continue to bite and bring the system to its knees in parts of the country.
We need to grow the mental health workforce and match mental health funding to the level of community need, or the system will keep collapsing under pressure.
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6.19am EDT 06:19
Minor climate change and environmental spending in budget
Not much new in the budget from a climate change and environment perspective, but there is some funding for cuddly looking mammals and elusive fish in captivity.
The Maugean skate – the endangered species at the centre of a political storm over the future of salmon farming in Tasmania's Macquarie Harbour – has been promised $3m over three years to support an expanded captive breeding program.
Giant pandas at the Adelaide Zoo get $3.8m in federal funding over five years to support their lifestyle and wellbeing.
On a more substantial scale, there is $250m over five years to help meet a government target of protecting 30% of the country's land and 30% of its territorial waters by 2030.
This funding – which was announced by the environment minister, Tanya Plibersek, on Saturday – goes to the land part of that goal.
It was broadly welcomed by conservation organisations, though some said it was not enough to do the job. Several campaign groups said it was no substitute for the introduction of stronger laws to boost nature protection – but that commitment has been kicked into next term.
Updated at 6.42am EDT
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Greens say Labor's budget 'underwhelming in the extreme'
The Greens senator Nick McKim was up earlier in the press gallery, describing the treasurer's budget as 'disappointing and underwhelming in the extreme'.
To give you an insider perspective of what happens in Parliament House as soon as media are let out of their device-less cages at 7.30pm, a conga line of interest groups appear in the Press Gallery to give their opinions on the federal budget.
The Greens joined that line too because it means they might get their budget reactions included in any late night television packages.
But back to McKim's comments – the Greens' Treasury spokesperson said the budget was 'far more notable for what it doesn't contain than what it does'.
On the surprise tax cuts announced tonight, McKim said they were 'tiny' and 'tardy', amounting to about 73c a day in the first year in 2026-27.
'You'd be lucky to get a Chupa Chup for that and you'd have to shop around to find one at that price,' he said, suggesting a number of Greens policies, including their proposed billionaires' tax, would have been more ambitious.
People are going to have to wait a long, long time for a very, very small tax break and, in the meantime, if you're a fossil fuel CEO, if you're a wealthy property speculator, you're popping the champagne corks tonight.
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Continuing from our last post:
The Australian Medical Association also pointed out some other 'missed opportunities' in the budget.
McMullen said not creating an independent health workforce agency – a body dedicated to ensuring Australia's medical workforce is distributed where it's needed – was a 'missed opportunity'.
She said the AMA will also be pushing the next government to address the growing crisis in the private health sector, including hospital closures, contract disputes between insurers and hospitals and growing evidence that more and more policyholders are downgrading their cover as premiums become less affordable.
McMullen said the additional funding for public hospitals would go some way to helping our increasingly public hospitals improve performance but the elected government would need to expedite finalising the National Health Reform Agreement.
While the recent investment from the federal government and action to address issues in some states and territories is welcome, the delay to a new National Health Reform Agreement was disappointing. The federal government's promised investment, originally estimated at $13bn, into our public hospitals is little more than a nice idea if states and territories fail to reach an agreement with the federal government.
McMullen said hospitals were being increasingly affected by rising rates of chronic disease and the government had also missed the opportunity to tackle obesity and chronic disease through a tax on sugary drinks.
Updated at 6.19am EDT
6.06am EDT 06:06
Australian Medical Association says 'structural reform of Medicare rebates' still needed
Australia's peak medical body says the budget contains 'welcome investments in Medicare' but structural reforms to the universal healthcare system is still needed.
The Australian Medical Association's president, Dr Danielle McMullen, said it was reassuring to see the additional $8.5bn for Medicare that was promised by both parties confirmed in the budget, together with funding to address GP workforce issues and medical workforce shortages.
But while this investment will help address affordability issues for many who don't currently qualify for bulk billing incentives, structural reform of Medicare rebates is needed to ensure today's patients get the care they need.
We are calling for a new seven-tier general practice consultation item structure that is designed to meet the challenges of the growing burden of complex and chronic disease – one that supports patients to spend more time with their GP as part of a comprehensive approach to care.
Updated at 6.18am EDT
6.02am EDT 06:02
Budget includes $17m over two years to support Ukraine
The federal government will pitch in with more aid to Ukraine as part of a wider increase to defence spending.
The budget includes an extra $17m over two years from 2024-25 to support the war effort, including for communications systems, artillery components, firearms and other equipment.
As flagged on Monday, the 2025-26 budget fast-tracks $1bn in planned defence spending, lifting the total amount allocated over the forward estimates to $10.6bn.
It is part of an additional $50.3bn in spending this decade, which will take funding for defence past 2.3% of GDP in the early 2030s.
Australia and its allies have been under pressure from Donald Trump to lift defence spending to 3% of GDP in part to combat China's influence.
In a joint statement, the defence minister, Richard Marles, the defence industry minister, Pat Conroy, and the veterans' affairs minister, Matt Keogh, said:
There is no greater responsibility for the Albanese Labor government than keeping Australians safe and securing our nation's future during a time of global uncertainty.
Ukraine's president, Volodymyr Zelenskyy, with Anthony Albanese in 2023. Photograph: Ukrainian Presidential Press Service Handout/EPA
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The Albanese government will increase the federal public service by 3,400 roles over the next year, adding to the more than 40,000 roles created since Labor first came to power. The latest federal budget papers also include another hit to the bottom lines of consultancy and labour hire firms with Labor committing to slash another $719m in external resourcing by 2028-29, totalling $4.7bn since 2022. Labor has increased its average staffing level by 3,436 jobs for 2025-25, the latest federal budget papers show, with the total number of roles now expected to reach 213,439 jobs. The 2025-26 federal budget shows a total of 11,800 permanent roles have been created since May 2022 to replace work previously undertaken by consultants and contractors.
The converted jobs make up about 28% of the 41,411 jobs added to the public service since Labor took office.
You can read more here:
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