2025/26 Federal Budget initial analysis

This Federal Budget lacks the long-term vision and reform necessary to address cost of living pressures being felt by the Tasmanian community.

While tax cuts will provide relief for many, those on the lowest of incomes — who do not earn enough to pay tax — get nothing. This budget missed a critical opportunity to lift Tasmanians out of poverty by raising working age payments to at least $82 a day.

This budget does provide some welcome investments in health, public education and care services, which help to restore years of cuts. Expanding bulk billing and boosting spending on public education will help communities around the country. 

In a housing crisis, there is sadly no new support for renters, and as a result the doubling of funding for homelessness services to around $400 million a year is essential to address the ongoing need. Additional funding ($6.2 million) for homelessness research, advocacy and coordination is a positive announcement. 

With many Tasmanians waiting more than a year and a half on the social housing wait list and forced to couch-surf, cram into unsuitable lodgings or even sleep rough, the outlook for an affordable place to call home is bleak.

Energy bill relief of $150 is welcome for those tens of thousands of Tasmanians who are experiencing energy poverty, but they are poorly targeted and deliver financial support to the wealthiest Australians, at the expense of increased support for those most in need. 

The Government’s total $6.8 billion spend on energy bill rebates could have funded energy efficiency upgrades for every social housing property in Australia, permanently reducing bills by thousands of dollars each year. 

With the longest public dental wait times in the nation, Tasmanians would have been hoping to see Medicare-funded dental services made available to everyone.