Australia's 2025/26 Budget Unveiled: Key Economic Forecasts and Highlights

The Australian Treasury's 2025/26 budget highlights include projections of a A$42.1 billion deficit, GDP growth estimates, unemployment rates, and CPI inflation. Notable initiatives involve tax cuts, increased healthcare funding, energy subsidies, a ban on foreign homebuyers, and support for aged care nurses.

The Australian government's budget for 2025/26 outlines fiscal plans and economic forecasts as the nation braces for a deficit of A$42.1 billion. Key figures were revealed on Tuesday, indicating a challenging financial landscape ahead with GDP growth projected to rise and unemployment steadying at 4.25%.

Amid these forecasts, several initiatives have been announced, including tax cuts set to reduce the base income tax rate to 15% in 2025/26, followed by 14% in 2026/27, costing A$17.1 billion over five years. Healthcare and consumer energy subsidies are also planned, with substantial investments to offer free GP visits and extend energy bill support to citizens.

Additionally, new regulations will temporarily prevent foreign nationals from purchasing existing homes, a strategy aimed at stabilizing the housing market. Funding allocations have been revised for defense and public services, with a notable increase for aged care nurse salaries.

(With inputs from agencies.)