Treasurer Jim Chalmers has handed down his fourth budget and, amidst an unprecedented cost of living crisis, there's a modicum of relief for young Australians. At a time when the Labor Government is preparing for its upcoming federal election campaign, there are a number of changes on issues relevant to Gen Z and millennial Australians. From women's health benefits to student loan help, here's everything you need to know about the 2025-26 budget, and how it will impact you.
Cutting student debt
One of the biggest outcomes of the 25-26 budget is a focus on reducing student debt. The Government has pledged to cut a combined $19 billion in student loan debt for 3 million Australians, by reducing all outstanding Higher Education Loan Program (HELP) and other student debts by 20 per cent, subject to the passage of legislation.
Similarly, if this legislation passes, the Government will also increase the amount that people can earn before they are required to start paying back their loans, from $54,435 in 2024–25 to $67,000. By the same token, compulsory repayments will be lower for people earning under around $180,000.
Expanding bulk billing incentives
Another notable benefit is a record investment of $7.9 billion into medicare, to provide more bulk billing so people can see a GP for free. The Labor Government estimates these changes will mean that 9 out of 10 GP appointments will be bulk billed.
As part of this initiative, the Government is also establishing the Bulk Billing Practice Incentive Program, to incentivise GPs to become fully bulk billing practices. As a result, they'll receive an additional 12.5 per cent loading payment on their Medicare rebates when they bulk bill all patients.
Lowering the cost of women's healthcare
As previously announced, the Government has plans to improve the affordability of women's healthcare, targeting issues like contraception and menopause. In the budget, this was reflected as more bulk billing for the insertion and removal of long-acting reversible contraceptives (LARCs), plus funding to establish eight new LARC Centres of Training Excellence, to ensure healthcare professionals are properly trained.
A number of oral contraceptive pills (Yaz, Slinda, and Yasmin) have been listed on the Pharmaceutical Benefits Scheme (PBS), plus funding will be put towards delivering 11 new endometriosis and pelvic pain clinics, additional to the 22 clinics already established. As previously announced, Australia's newly greenlit endometriosis medication, Ryeqo, will also be listed on the PBS.
Supporting renters
Renters will benefit from an increase in the maximum rates of Commonwealth Rent Assistance by 45 per cent, with around one million households eligible. There's also a Better Deal for Renters initiative in the works, which would include a framework on genuine reasonable grounds for eviction (ending "no grounds" evictions), and moving towards limiting rental increases to once a year.
Tax cuts for low income earners
All tax payers earning more than $45000 will receive tax cuts in the 2026-27 financial year, totalling $268 per person. The current tax scheme sees workers pay 16 cents for every dollar earned, between $18,200 and $45,000. Under the new budget, this will drop to 15 cents as of July 2026, and then again to 14 cents in 2027. The tax rate for higher incomes will remain unchanged.
