Chalmers says housing infrastructure is “crucial”

Our live coverage of the 2025 federal budget has now concluded. You can read past updates below or read our budget insights.

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Signing Off

Treasurer Jim Chalmers speaks to the media as he arrives to deliver the budget at Parliament House. Photo: Getty Images

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8:34pm
Well that’s it everyone, thank you for coming on the ride with us. It’s clear cost of living and housing policy have played a big role in this budget and will no doubt be major issues heading into the election.
Stay tuned for more reactions to the 2025 federal budget in the coming days. 

Opposition treasurer Angus Taylor responds to the budget

8:30pm

Angus Taylor has called the proposed tax cuts in tonight’s budget a “hoax”.

He has, however, not ruled out tax cuts in the Coalition’s own budget response.

Jim Chalmers has now signed off

8:28pm

Dr Chalmers has finished up his interview with the ABC by stating the government has delivered and “intergenerational budget” with investment in green metals and the future – perhaps a play to the younger generations who will make up the majority of voters in the upcoming election.

‘In the teeth of an election’ Sarah Ferguson puts to Chalmers

8:21pm

Tax cuts have been questioned with the opposition claiming the budget is a “tax hoax” to entice voters. Chalmers responded by saying it was tackle cost of living and make Medicare more robust.

Chalmers is interviewed post budget speech

8:13pm

Tax cuts will benefit women and those on lower incomes, Chalmers says.He says the best way to help cost of living woes is through the tax system, despite the effect of the inflationary impact the tax cuts may have.He says the cost of live relief will not have an impact on CPI and therefore interest rates.

That’s a wrap – for now

8:03pm

There you have it, $17 billion to be spend over five years, if the government is re-elected. Jim Chalmers will now make his way to the ABC studios to be interviewed by Sarah Ferguson. Stay tuned.

“Seizing the best of what’s ahead of us”

8:01pm

Dr Chalmers has outlined the main aims of the budget in summary, which he said include:

“To bring inflation and debt down, get wages and growth up, and keep unemployment low.”

“A tight budget”

7:58pm

Despite the deficit, Dr Chalmers says this budget is “$207 billion better than we inherited”.

“We’re repairing the Budget without ignoring our responsibility to build a stronger, fairer and more inclusive society – Where more Australians have the chance to contribute to and share in our economic success.”

“We’re providing $1.3 billion for Closing the Gap and economic self-determination for
First Nations Australians – With investments in remote community services, opportunities for business, and support for home ownership.”

Defence spending to grow

7:56pm

Dr Chalmers said an extra $50.3 billion will grow defence spending to 2.3% of GDP by the early 2030s.

Infrastructure upgrades

7:55pm
Dr Chalmers has outlined the big infrastructure items budgeted for this year, including:

• $7.2 billion to upgrade the Bruce Highway in Queensland
• $2.3 billion for Western Sydney, including $1 billion for the rail network
• $2 billion for transforming Sunshine Station in Melbourne for the proposed airport rail link

“Building Australia’s future means building on the strength of our regions”.

7:53pm

“That’s why we are securing banking services in country towns and flights in the bush,” Dr Chalmers said.
 $3 billion will be added in additional equity to complete the rollout of the National Broadband Network.

Cheaper childcare

7:48pm
In a boost for families, the childcare subsidy activity test will be replaced with a guarantee of three days of subsidised childcare, which is expected to result in 100,000 families being eligible for additional hours of subsidised early childhood education.
Dr Chalmers says the government will build more childcare centres in areas of need.

“Bigger range of homes” for first-home buyers

7:47pm
Dr Chalmers says the new $800 million investment into its Help to Buy scheme will make it accessible to more first-time buyers.
“Tonight, we’re expanding our Help to Buy scheme,” Dr Chalmers said.
“This is part of our efforts to help more Australians buy a place of their own. We will update the property price and income caps so more first home buyers are eligible for the scheme. This will help 40,000 Australians buy their first home in the next four years.
“The changes will mean they can access a bigger range of homes and buy one that suits them. And we’re easing pressure on the housing market by banning foreign investors from buying established homes, and cracking down on foreign land banking as well.”

Housing infrastructure “crucial”: Treasurer

7:46pm
Housing infrastructure has been an important issue for the Albanese government, Dr Chalmers says.
“We’re making sure new properties are well-located and connected to the infrastructure they require,” Dr Chalmers said.
“Our Housing Support Program is funding the crucial roads, water and power these new homes need. Our national leadership is incentivising states and territories to reform their planning systems to accelerate new housing supply.
“To build more, we need to train more builders. That’s why we’re attracting more apprentices into the housing industry. By doubling incentive payments so eligible apprentices get up to $10,000 if they train-up in the housing construction sector.”

“We are tackling the housing shortage from every responsible angle”

7:45pm
Dr Chalmers says the government has been focused on increasing housing supply since coming to power.
“We are tackling the housing shortage from every responsible angle, making home ownership more affordable for young Australians and young families in particular,” he said.
“Our $33 billion plan will help build 1.2 million new homes before the decade is out. This includes $54 million to accelerate the uptake of modern methods of housing construction. Which is all about building more homes, more quickly. It supports our work to cut red tape and reduce financial barriers to more efficient construction methods.”
Dr Chalmers noted that the first two rounds of the $10 billion Housing Australia Future Fund were helping build about 18,000 social and affordable homes.

Expanded bulk billing

7:44pm
Medicare will receive an $8.5 billion injection to boost the number of bulk-billing appointments available to Australians.
The government expects nine out of 10 GP visits to be fully bulk-billed by 2030 as a result.
“More bulk billing will mean less pressure on families,” Dr Chalmers said.
He has also flagged $644 million in funding for an extra 50 Medicare urgent care clinics, $1.8 billion for public hospitals and $793 million for women’s health.

Cheaper medicines

7:43pm
The maximum price of a Pharmaceutical Benefits Scheme (PBS) script will be reduced from $31.60 to $25, while more medicines will be included in the scheme.

Student debt slashed

7:42pm
The 3 million Australians with student debt will see their loan balances slashed by 20% – a move that will cost the government $16 billion.
“A university education is a life-changing opportunity, but it should not leave Australians with a lifetime of debt,” Dr Chalmers said.

‘New cuts for every taxpayer’

7:42pm

Dr Chalmers has detailed an extra $536 in tax cuts for every taxpayer, staggered over two years.

This is a result of a reduction in the rate of tax paid in the lowest income

band from 16% to 15% in the first year, before dropping to 14% in the second year.

It will cost the government $17 billion in total and save a typical taxpayer the equivalent of a takeaway coffee each week.

However, the tax cuts won’t start until the middle of next year. You can read more about the tax cuts here

‘People are still under pressure’

7:40pm

Dr Chalmers says many people are still doing it tough and the cost of living is front and centre in this budget.

“Our plan to rebuild living standards starts with cost-of-living help and wages growth,” he said

‘The worst is behind us’

7:36pm

Dr Chalmers says Treasury now expects inflation to be sustainably back in the target band six months earlier than anticipated.

He also said unemployment is now projected to peak lower at 4.25, while employment and wage growth will be stronger this year.

“All of this means the soft landing we have been planning and preparing

for is looking more and more likely,” he said.

‘The global economy is volatile and unpredictable’

7:33pm

Dr Chalmers has described the global economy as ‘volatile and

unpredictable, calling out the threat of a global trade war, China’s slowing growth and conflict in Europe and the Middle East.

But he says Australia has emerged from the spike in global inflation “in better shape than almost any other advanced economy”.

Jim Chalmers takes the floor

7:37pm

Well, here we are, and treasurer Jim Chalmers has taken the floor to hand down his fourth federal budget.

Mr Chalmers says the budget has five main priorities:
Helping with the cost of living, strengthening Medicare,
building more homes, investing in education and making the economy stronger and more productive.

He’s also flagged more tax cuts alongside measures already we’ve already heard about: an extension of energy bill relief, an expansion of bulk-billing, cheaper medicines and a reduction to student debts.

Final countdown

7:13pm

Time to get yourself a snack and a beverage as we get ready for the treasurer’s speech – set to start in 15 minutes.

See you back here shortly

What do we know about infrastructure investment?

7:02pm

Australia’s most populous states are set to benefit from federal dollars for infrastructure projects.

Queensland will receive $7.2 billion for an upgrade to the Bruce Highway, New South Wales will get $1 billion to cover the cost of future rail corridors linking western Sydney to the Macarthur region while Victoria will pocket an extra $2 billion towards building the long-awaited Melbourne airport train.

Prime Minister Anthony Albanese has also flagged support for the steel and aluminium industries in the wake of US President Trump’s 25% import tax.

Will there be anything for property investors?

6:29pm

There are no measures we know of as yet that would directly benefit property investors.

However, a joint statement by the minister for housing and homelessness Clare O’Neil and the minister for industry and science Ed Husic said the investment in pre-fab and modular homes would “encourage private investment”.

Time will tell if any other measures will be included in this year’s budget.

What about cost of living?

6:00pm

It’s one of the biggest issues for many Australians and is set to be at the centre of the 2025 budget.

So far, we know there will be an extension of last year’s energy bill relief package, which gave households $300 for power bills.

This year that rebate will be $150 per household to the end of 2025 as part of a $1.8 billion energy rebate pledge.

The budget will also assist with healthcare costs, including $8.5 billion to increase the number of bulk-billed GP visits available to Australians, and $689 million to cut the maximum cost of all medicine listed on the Pharmaceutical Benefits Scheme from $31.60 to $25.

It will also include relief for those with student debt and for families with children in childcare – reducing student debts by 20% and ensuring all families earning less than $533,280 are guaranteed three days of subsidised childcare.

What will be spent on housing?

5:30pm

The other housing measure already announced is about boosting housing supply – which is much needed to make housing more affordable and to accommodate our growing population.

One of the ways the government plans to do this is by ramping up investment in the pre-fab and modular housing industry.

It estimates construction times could be cut in half by manufacturing a house in a factory rather than building it on site.

Read more: How much does it cost to build a house

The budget will include $49.3 million to state and territory governments to invest in local programs to grow the industry.

It will also include $4.7 million to create a voluntary national certification process for offsite construction to streamline approvals.

Will there be anything for first-home buyers?

5:15pm

First up, there are some things we already know have made the cut, and one of those things is an expansion of the Labor government’s Help to Buy scheme.

$800 million will be invested into the shared equity scheme to expand the program, now set to cost $6.3 billion.

The extra funding will increase the income caps from $90,000 to $100,000 for individuals and from $120,000 to $160,000 for joint applicants and single parents. It will also boost the property price caps to give first-home buyers more choice.

Welcome to our live coverage of the federal budget

5:00pm

Hello and welcome to our coverage of tonight’s federal budget.

We will be watching with huge interest (and perhaps a bowl of popcorn) to see what treasurer Jim Chalmers has in store for households.

Whether you are a first-home buyer, a mortgage holder, a renter or a property investor, we’re ready to break down what the budget means for you.

Read more: Budget 2025: What we know so far on housing, cost of living and more