It’s been a week that will shape the nation’s future – a Federal Budget, a Budget in Reply, and finally, earlier today, the federal election was called for Saturday, 3 May.
Treasurer Jim Chalmers confirmed the budget was back in the red and managed to surprise with an unexpected tax cut, reflecting the cost of living theme of the Budget and setting up Labor’s springboard into the election campaign.
In his Budget in Reply speech last night, Mr Dutton sought to leverage the Coalition’s perceived strength on immigration – promising to cut migration and stop the boats – but deferred its announcement to increase defence spending until the election campaign. While opposing the Albanese Government’s income tax cuts, the Opposition Leader delivered a sugar hit of his own, promising to halve Australia’s fuel excise.
We look forward to keeping you updated throughout the campaign in the lead-up to May.
Here’s to democracy and a great contest of ideas!
Top talking points
📊 Newspoll results: The Coalition leads[Paywall] Labor 51–49 on a two-party preferred basis, though both major parties are struggling to attract female voters.
🎙 Budget follow-up: Treasurer Jim Chalmers addressed[Video] the National Press Club following the release of the Federal Budget.
📈 Inflation data released: The ABS reported a 2.4 per cent rise in the monthly CPI indicator, reflecting modest inflation growth.
🐟 Salmon farming legislation: Legislation guaranteeing salmon farming in Tasmania’s Macquarie Harbour passed the House of Representatives.
🏟 Brisbane Olympics delivery plan: The Queensland Government unveiled its plan for the 2032 Olympic Games, outlining key infrastructure and development priorities.
Making headlines this week
Federal Budget
Following two consecutive surpluses, a $27.6 billion deficit was confirmed in the 2025-26 Federal Budget on Tuesday night, with deficits forecast over the forward estimates.
While cost of living relief was a central focus, significant funding was also directed toward the National Broadband Network, Whyalla Steelworks, and infrastructure projects in New South Wales and Victoria.
📘 Read GRACosway’s full Budget insights.
The Opposition’s Budget in Reply
Positioning it as an election pitch to cost of living weary voters, Peter Dutton’s Budget in Reply outlined proposals to halve the fuel excise, cut immigration, reduce the size of the Australian Public Service, and maintain health and education funding guarantees.
Things to watch
🏛 State parliaments return: Victoria and Queensland Parliaments will sit next week, with state-level policy and legislative updates expected.
Government responds to supermarket inquiry, financial reform consultation opens
The federal government has released its response to the ACCC’s Supermarkets Inquiry, announcing it agrees in principle to all 20 recommendations. The reforms aim to improve transparency, supplier protections, and competition in the sector, including proposals for clearer pricing, adoption of Productivity Commission recommendations, and support for community-owned supermarkets in regional and remote areas.
In finance, consultation has opened on the second tranche of the Delivering Better Financial Outcomes reforms, which proposes expanding access to financial advice within the superannuation industry. Submissions close on 2 May, with legislation to follow.
Separately, the government has outlined its next steps for regulating digital assets, with a new statement focused on establishing clear frameworks for digital platforms, stablecoins, and broader innovation in the sector.
On the final sitting day before the election was called, Parliament passed legislation to reduce personal income tax rates. The changes will lower the first marginal tax rate from 16 to 14 per cent over two years, saving the average worker $268 in 2026-27 and $536 per year from 2027-28.
Australia-Japan ties, overseas travel safety, and defence capability upgrades
Grants awarded under the 2024–25 Australia–Japan Foundation program have been announced, supporting projects that strengthen trade, investment, and bilateral cooperation between the two countries.
A new travel awareness campaign has also been launched to highlight alcohol-related risks for Australians overseas, following serious incidents reported in Laos last year.
In defence, the first of 42 High Mobility Artillery Rocket Systems have arrived in Australia from the United States. The $1.6 billion acquisition, originally announced in response to the Defence Strategic Review, aims to strengthen the ADF’s long-range strike capability.
Energy relief, water infrastructure, and environmental protection
From 1 July, an additional $150 in energy bill relief will be available to households and small businesses under an expanded cost of living measure. In regional infrastructure, $12.5 million has been allocated to improve the drinking water supply on the Mid North Coast of New South Wales.
In state environmental programs, Queensland announced $24 million in additional funding to combat fire ants, while in New South Wales, $5 million was committed to protecting threatened species in the state’s far west, including habitat restoration for the Mallee bird and grey range thick-billed grasswren.
Infrastructure upgrades, broadband access, and digital services
A $25 million investment has been announced for the next stage of the Barton Highway upgrade in the ACT, supporting planning for future improvements to safety and traffic flow.
In communications, $14 million has been committed to expanding Wi-Fi availability at evacuation centres, following service disruptions during ex-Cyclone Alfred. Meanwhile, the latest ACCC Measuring Broadband Australia report shows that broadband speeds continue to improve in regional and remote areas.
Aged care pricing, cyclone support, and workplace reforms
New guidance has been released for in-home aged care providers to assist in setting prices during the first year of the Support at Home program, which begins on 1 July.
In education, $2.5 million in emergency support has been activated for families and early childhood education providers affected by ex-Tropical Cyclone Alfred.
In workplace reforms, a ban on non-compete clauses has been introduced for most workers, aimed at promoting greater labour mobility. Additionally, $10 million is being invested in programs supporting disadvantaged young people in New South Wales through education, training, and employment services.
Parliament has also passed new gender equality legislation requiring large employers to select and meet gender equality targets, and report progress to the Workplace Gender Equality Agency.
In case you missed it...
📺 Teal Independent Monique Ryan’s husband, Peter Jordan, was filmed removing a campaign sign for Liberal candidate Amelia Hamer in Kooyong; both have since apologised: