The Federal Government will deliver a Budget tomorrow.
It will record a deficit for the first time in three years, and offer a $150 energy bill discount.
The Budget sets out the Government’s spending and tax plans.
Prime Minister Anthony Albanese was widely expected to announce an election before handing down a Budget (usually done in May).
However, the onset of ex-Tropical Cyclone Alfred earlier this month delayed his decision.
Budget
The Budget is an annual set of economic documents, and the Government’s most important financial event of the year.
It lays out how the government earns money (revenue) and where it plans to allocate it (spending). Revenue mostly comes from personal income tax, company tax, and the goods and services tax (GST).
When the Government earns more than it spends, it has a ‘surplus’. This was the case with the last two budgets. When the reverse happens, it goes into a ‘deficit’, which is the case this year.
Top areas of Government spending in the 2024-25 Budget:
Timing
The Treasurer traditionally hands down the Budget on the second Tuesday in May.
It has been brought forward this year because of the timing of the upcoming federal election.
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While the election was originally tipped for 12 April, on the weekend when Albanese was due to announce it, ex-Tropical Cyclone Alfred made landfall.
The election must be held by 17 May, with at least 33 days’ notice. This means the usual Budget day will fall too close to the election.
What to expect
Treasurer Jim Chalmers has already confirmed the Government will forecast a deficit for the coming year.
Chalmers has described this year’s Budget as focusing on “repair, relief, and reform”.
On Monday morning, the Government announced the Budget will include $2 billion in “savings and reprioritisations” through measures such as reducing reliance on external consultants.
Spending
While the full details of the Budget will not be known until Tuesday night, the Government has made some announcements in advance.
$150 energy bill discount: An extension of a similar measure rolled out last year. Two $75 discounts will automatically apply to quarterly power bills for individual households and one million small businesses, from July.
Bulk-billed GPs: A bonus payment to doctors who fully bulk-bill all patients from 1 November, 2025.
TDA
Some of the TDA team will be in Canberra on Tuesday to unpack the 2025/26 Budget.
Journalists, politicians, interest groups, and lobbyists will enter what’s known as the “lock-up” for six hours from 1.30pm AEDT, where access to the internet is cut off and the budget papers are handed out.
Budget coverage will begin from around 7.30pm, at the same time that the Treasurer makes a speech in Parliament.
