Australia is turning the corner despite global uncertainty, says Treasurer Jim Chalmers. Photo: stock
Australia’s economy is turning the corner with the first back-to-back surplus in nearly 20 years, Treasurer Jim Chalmers says in releasing the 2025-26 federal budget.
This improved performance comes amid rising global uncertainty and tension, and subdued growth.
“The Budget builds on the strong foundations we have laid, helping to secure our nation’s future at a time of global uncertainty,” Chalmers says.
“Because of the work Australians have done together, our economy is turning the corner. Inflation is down, unemployment is low, real wages are growing again, and interest rates have started to come down.”
Chalmers says Labor has turned “two big Liberal deficits into two Labor surpluses” in their two years.
“The deficit in 2025–26 is projected to be $42.1 billion, lower than MYEFO and what we inherited. Debt is $177 billion lower in 2024–25 than what was forecast at the last election, helping us avoid around $60 billion in interest costs.”
Prime Minister Anthony Albanese defended a $5 tax cut, saying it is sustainable.
“It is something that we can afford. It builds on importantly the tax cuts that we introduced that began this financial year,” he told TV’s Today show today (March 26).
For an overview of the new Federal Budget, click here
REACTIONS IN BRIEFS
- It maintains a decades-long tradition of spending on treatments and hospitals rather than invest in preventive health measures. “We want future governments to ensure public money is invested in fences at the top of the cliff, not in ambulances at the bottom of it.” Public Health Association of Australia CEO, Adj Prof Terry Slevin.
- A continued investment in HIV prevention, testing and treatment puts Australia a step closer to virtual elimination of transmission, according to Health Equity Matters, the peak body for HIV response. “Continued investment in HIV prevention, testing, and treatment programming … is absolutely essential.” Health Equity Matters CEO Dash Heath-Paynter.
- The Older Persons Advocacy Network (OPAN) says there is a lack of adequate funding for the aged care sector. “OPAN would have liked to see increased access to hardship provisions for older people who have limited financial means, to make sure they don’t slip below the poverty line.” OPAN CEO Craig Gear OAM.
- The Renewable Energy Alliance (RE-Alliance) and Community Power Agency both say the government missed an opportunity to show regional communities it is listening. “We will now be looking closely for serious funding commitments during the upcoming federal election campaign.” RE-Alliance National Director Andrew Bray.
- The Australian Workers’ Union (AWU) says it provides a long-term boost for workers. “The Coalition has made it clear that if it wins government it will continue to beat the same broken free market drum that saw factories close and industry freeze investment in Australia last time they were in office.” AWU National Secretary Paul Farrow.
- There is a failure to provide new support for 50,000 stoma patients who were waiting on a funding agreement to access new and better products. “Six reviews and still no action. The patients, industry and medical professionals that support stoma patients have been abandoned by the government.” Stoma Industry Association chairman Matthew Dalton.
- Super fund HESTA welcomed measures to improve outcomes for women and providing more cost-of-living relief as well as progress on reforms to paying super on Commonwealth paid parental leave and at the same time as wages. “Further measures of relief are good news. This includes new tax cuts, a further energy bill rebate and previously announced plans on early childhood education and medicine.” HESTA CEO Debby Blakey.
- People with Disability Australia (PWDA) welcomed the announcement of $364.5 million for foundational supports for people with disability but wants greater clarity. “Seeing Foundational Supports in the budget is important but we need more detail on how a long-term agreement will be struck with the states and territories.” PWDA Deputy CEO Megan Spindler-Smith.
