On this page:
🔐 Defence | Foreign Affairs and Trade | Home Affairs | Attorney-General
🩺 Health and Aged Care | Social Services
🚆 Infrastructure, Transport, Regional Development, Communications and the Arts
💼 Employment and Workplace Relations | Education
🏭 Industry, Science and Resources
🌱 Climate Change, Energy, the Environment and Water | Agriculture, Fisheries and Forestry
🔐 Defence | Foreign Affairs and Trade | Home Affairs | Attorney-General
The Government has reaffirmed its commitment to national security and regional stability amid ongoing global uncertainty and escalating geopolitical tensions. Defence spending is set to increase to 2.3 per cent of GDP by 2033–34, with $1 billion brought forward over four years from 2025–26 to deliver enhanced military capabilities, in line with the National Defence Strategy and the Review of Australia’s Surface Combatant Fleet.
In foreign affairs, measures reflect a continued focus on advancing Australia’s strategic interests abroad. These include reopening the Australian Embassy in Kyiv and expanding trade and economic ties with India. The Budget also reflects increased investment in domestic security, with funding directed to border protection, law enforcement, and efforts to combat transnational crime. Promoting social cohesion at home is another priority, with additional support for community safety initiatives.
Key measures
- $194.5 million over five years from 2024–25 (including $41.6 million in capital funding over three years from 2025–26) to support Government priorities including war crimes investigation and prosecution, and the Australian Criminal Intelligence Commission’s work to disrupt transnational crime.
- $178.4 million over the forward estimates from 2024–25, and $1.2 million annually ongoing, to support social cohesion, including $60.4 million over four years for security upgrades at Jewish community sites and institutions.
- $164.6 million over four years from 2024–25 to support law enforcement operations in the Solomon Islands, delivered through the Australian Federal Police.
- $84.5 million over four years from 2025–26 to strengthen border security, including $74.9 million in 2025–26 to address illegal fishing and biosecurity threats in Australia’s northern waters.
- $61.7 million in 2025–26 to continue regulatory, safety and international policy work related to Australia’s acquisition of conventionally armed, nuclear-powered submarines under AUKUS Pillar I.
- $36 million over five years from 2024–25 to reopen and operate Australia’s Embassy in Kyiv.
- $28.8 million over two years from 2024–25 to improve disaster resilience and preparedness, including $17.7 million in 2025–26 for the Bushfire Community Recovery and Resilience Program.
- $21.2 million in 2025–26 to continue initiatives to prevent, disrupt and combat child sexual abuse, and maintain support services for victims.
- $20 million over four years to deepen economic engagement with India, including the establishment of an Australia–India Trade and Investment Accelerator Fund.
- $17 million over two years from 2024–25 to support Ukraine’s defence efforts, including the provision of firearms, artillery components and other defence hardware.
Further reading
🩺 Health and Aged Care | Social Services
The Government has reinforced its focus on health and social services in the lead-up to the next federal election, with significant new funding to strengthen Medicare and improve access to affordable medicines. Measures include the expansion of Medicare Urgent Care Clinics, increased support for women’s health, and ongoing investment in the Pharmaceutical Benefits Scheme. The continuation of funding for the Help to Buy shared equity scheme was also confirmed, with additional investment allocated in this Budget.
Key measures
$33.9 billion in 2025–26 to extend the 2020–2025 Addendum to the National Health Reform Agreement until 30 June 2026, including $1.8 billion for public hospitals and health services.
• $800 million additional equity investment in the Help to Buy program, bringing total funding to $6.3 billion.
• $784.6 million over four years from 2025–26 and $236.4 million annually on an ongoing basis to reduce the cost of PBS medicines from 1 January 2026.
• $657.9 million over three years from 2025–26 to fund an additional 50 Medicare Urgent Care Clinics.
• $8.4 billion over five years from 2024–25 and $2.5 billion annually on an ongoing basis to expand access to bulk billing services.
• $1.8 billion over five years from 2024–25 for new and amended PBS listings.
• $648 million (in decreased receipts) over five years from 2024–25 to increase low-income thresholds for the Medicare levy for low-income families.
• $539.4 million over five years from 2024–25 and $98.8 million in 2029–30 to support medicine access and develop the First Pharmaceutical Wholesalers Agreement with the National Pharmaceutical Services Association.
• $291.6 million over five years from 2024–25 and $12.7 million in 2029–30 to continue aged care reform, following the Royal Commission into Aged Care Quality and Safety.
• $240.4 million over five years from 2024–25 and $42.3 million annually on an ongoing basis for women’s health services and programs, including improved access to contraception.
Further reading
🚆 Infrastructure, Transport, Regional Development, Communications and the Arts
The Government has continued to focus on metropolitan, rail and major highway upgrades through targeted infrastructure investment. Ahead of the 2025 Federal Election, the majority of funding has been directed towards key election battlegrounds in New South Wales and Victoria. In the communications portfolio, upgrades to the NBN were prioritised, and funding has been provided to extend the operations of the National Anti-Scam Centre.
Key measures
- A continuation of $15.6 billion over 10 years from 2024–25 for major road infrastructure projects, including $7.2 billion for upgrades to the Bruce Highway in Queensland, $350 million for the Kwinana Freeway in Western Australia, and $200 million for the Stuart Highway in the Northern Territory.
- A continuation of $3 billion over seven years (via equity investment) from 2024–25 to upgrade the remaining 622,000 premises to NBN Co’s fibre-to-the-node network.
- A continuation of $3 billion over 10 years from 2024–25 for new rail projects, including $2 billion for the Melbourne Rail Link in Victoria and $1 billion for the Southwest Sydney Metro extension in New South Wales.
- A continuation of $2.3 billion over 10 years from 2024–25 for existing road projects, including $1.3 billion for upgrades in outer suburban growth areas of Melbourne to support the Allan Government’s Road Blitz, and $1.1 billion for road upgrades around the Western Sydney International Airport.
- A continuation of $1.5 billion over eight years from 2024–25 for existing road projects, including $1.1 billion for the Western Highway in Victoria and $200 million for the Rockhampton Ring Road in Queensland.
- A continuation of $425 million over 10 years from 2024–25 for existing regional road projects, including $280 million for the Arthur Highway and the Southern Outlet Transit Extension in Tasmania, $125 million for the Curtis Road Level Crossing removal in South Australia, and $20 million for the Monaro Highway Upgrade in the Australian Capital Territory.
- A continuation of $58.8 million over five years from 2024–25 to support housing delivery, including $54 million over four years to assist with the construction of prefabricated and modular housing.
- $32.7 million in 2025–26 to support ongoing safety and regulatory services provided by the Australian Maritime Safety Authority, the Australian Transport Safety Bureau, and the Civil Aviation Safety Authority.
- $8.6 million in 2025–26 for Revive – National Cultural Policy to support live music venues and festivals showcasing Australian bands and artists.
- $6.7 million in 2025–26 to extend the operations of the National Anti-Scam Centre within the ACCC.
Further reading
💼 Employment and Workplace Relations | Education
The Government has continued its reform agenda across education and workplace relations, with new measures to abolish non-compete clauses for low- and middle-income earners, expand access to vocational training, and provide additional support for apprentices and public schools. As of Budget night, the ACT, Tasmania, New South Wales, South Australia and Queensland have signed up to the Better and Fairer Schools Agreement.
Key measures
- Abolition of non-compete clauses for employees earning up to $175,000.
- $722.8 million over four years from 2025–26 to deliver increased support for apprentices, previously announced in the MYEFO. This includes:
- $626.9 million over four years to reframe the New Energy Apprenticeships Program as the Key Apprenticeship Program, expanding its coverage to include critical residential construction occupations.
- $77.8 million over four years to extend the interim Australian Apprenticeship Incentive System settings for a further six months, from 1 July to 31 December 2025.
- $407.5 million over four years from 2025–26 to support jurisdictions that have signed up to the Better and Fairer Schools Agreement.
- From 1 January 2027, 100,000 free TAFE places will be made permanent, subject to the passage of legislation.
- $11.5 million over four years from 2025–26 to support the implementation of the Early Childhood Education and Care 3 Day Guarantee and improve educational outcomes in Australian schools.
Further reading
🏭 Industry, Science and Resources
The Government has maintained its focus on the Australian metals industry as part of its broader commitment to building a future-focused resources sector. Funding has been confirmed to support aluminium and iron smelters in their transition to renewable energy, alongside financial support for the Whyalla Steelworks during its administration, in partnership with the South Australian Government. The Budget also includes funding to advance Australia’s scientific capability through new investments in the CSIRO, the National Measurement Institute and the Square Kilometre Array project.
Key measures
- $2 billion over 19 years from 2024–25 for Green Aluminium Production Credits, supporting aluminium smelters to transition to renewable energy by 2036.
- $1 billion over seven years from 2024–25 for the Green Iron Investment Fund, assisting iron projects to establish and transition to low emissions facilities.
- $219.3 million over two years from 2024–25 to support the Whyalla Steelworks while under administration, including a co-contribution and taskforce with the South Australian Government, and creditor assistance payments.
- $55 million over four years from 2025–26 to support research and partnership programs into invasive species at the Commonwealth Scientific and Industrial Research Organisation (CSIRO).
- $47.9 million in 2025–26 to contribute to the Square Kilometre Array project, a global initiative to build the world’s largest radio telescope.
- $34 million in 2025–26 to sustain operations at the National Measurement Institute, including remediation works.
Further reading
🌱 Climate Change, Energy, the Environment and Water | Agriculture, Fisheries and Forestry
The Government has continued to prioritise cost of living relief by extending the Energy Bill Relief Fund for Australian households and small businesses until the end of 2025. Investment in renewable energy remains a key focus, with significant funding allocated to the Clean Energy Finance Corporation. Overall, the Government has taken a targeted approach to portfolio spending, with many measures funded through redirected existing resources.
Key measures
- $2.0 billion over the forward estimates for the Clean Energy Finance Corporation to invest in renewable energy and technologies. Funding for this measure has already been committed by the Government.
- $1.8 billion over two years to extend the Energy Bill Relief Fund until the end of 2025, providing Australian households and eligible small businesses with a $150 rebate.
- $212.0 million over four years to strengthen environmental protections and support the Government’s commitment to safeguard 30 per cent of Australia’s land and territorial waters by 2030, including $200 million for the Saving Australia’s Bushland program.
- $87.7 million over three years to deliver a range of water infrastructure projects, including the Cairns Water Security Project.
- $45.2 million over three years to support agriculture, fisheries and forestry priorities, including $23.8 million for agricultural trade events.