Treasurer Jim Chalmers has repeatedly warned Australian voters not to expect too many surprises in Tuesday's budget, delivered mere weeks ahead of a May election.
This is partially because the budget itself is a bit of a surprise.
The government was widely tipped to go to an early election and skip delivering its fourth budget. However, this was ruled out due to the impacts of Cyclone Alfred.
Rich Insight economist Chris Richardson told SBS News that voters won't see too many sweeteners in the "accidental" budget.
"Ordinarily pre-election budgets are the ones that are full of goodies for families ... but this is an accidental budget with cyclones throwing off the timing for the government of its election plans so it's already announced a bunch of things we will see," he said.
Richardson refers to a sizeable number of policies made public in recent months, with over $40 billion in pre-election commitments.
After two back-to-back surpluses, the Treasurer is expected to deliver the first of many budget deficits in Australia's economic outlook.
The government's December Mid-Year Economic and Fiscal Outlook (MYEFO) projected a $26.9 billion deficit for this financial year. This was expected to reach $46.9 billion in 2025-26.
Richarson said recent surpluses were "artificial" due to revenue increases from "a combination of war inflation, migration and a bunch of things that pushed up the tax intake artificially".
He warns the budget deficit will continue to grow due to government spending.
Here are six things we know will be included in the 2025 budget:
More power bill relief
On Sunday, Labor announced that all Australian households and businesses will receive an extra $150 in energy bill relief if the government is re-elected.
The plan will see the rebates, paid in two $75 instalments over six months, extended until the end of 2025.
The federal funding follows last year's $3.5 billion power bill sweetener which offered $300 per household. The extension adds $1.8 billion to the budget over the forward estimates.
Major boost to Medicare
All Australians will benefit from bulk-billed GP visits, with the government pledging $8.5 billion to deliver an additional 18 million doctor visits annually.
Labor has described it as the biggest boost to Medicare since it was created 40 years ago.
The plan — which will be matched by the Coalition — will incentivise clinics to bulk bill their patients as well as offer extra nursing scholarships and general practice training programs.
The government has also vowed to open an additional 50 urgent care clinics — on top of the 87 it has opened — by June 2026 in its second term, should it be re-elected. This will add $644 million to the budget.
Labor has described its funding commitment to Medicare as the single largest investment in the health insurance scheme since it was created in 1984. Source: AAP / Jeremy Ng
Incentives for apprentices
Apprentice tradies will receive an extra $10,000 under a re-elected Albanese government, as Labor tries to encourage more young people into construction in a bid to build the 1.2 million new homes it has promised.
The $626 million promise will mean apprentices get $2,000 on top of their wages at six, 12, 24, 36 months and once they complete their training.
Alcohol excise freeze
In a win for beer drinkers, the Albanese government has committed to freezing the draught beer excise for two years from August 2025.
Labor will freeze the beer tax for two years if re-elected. Source: Getty / Bec Hannaford
It follows a $280 million forecasted loss from the spirits tax revenue, announced in the federal government’s MYEFO.
Women's health cheaper under PBS additions
Labor has pledged to defend Australia's Pharmaceutical Benefits Scheme (PBS), promising to cap most prescriptions to $25 by January 2026.
The current maximum cost of filling a script for a PBS medicine is $31.60 (down from $42.50 in January 2023) for general patients and $7.70 for concession cardholders, with the federal government paying the remaining cost.
The further reduction to $25 will cost the budget $689 million.
In February the government committed $573 million to women's health by adding several medications to the PBS.
Coming into effect on 1 May, this includes several oral contraceptive pills, the endometriosis medication Ryeqo and IVF medication Pergoveris.
Cuts to student debt
Three million Australians can expect to have 20 per cent of their student loan debts wiped by 1 June 2025.
The major $16 billion commitment has been criticised by the Coalition as unfair to the Australians without loans that will help foot the bill.
It builds on Labor's promise to establish 100,000 fee-free TAFE places from 2027 and increase the income threshold required before students start paying back their loans.
The measures target young Australians, with the upcoming federal election marking a significant shift in voter demographic, as gen Z and millennial voters now outnumber baby boomers in every state and territory for the first time.
