After attending the 2025–26 Federal Budget lock-up in Canberra, Tash gained some exclusive insights from inside the room.

In this episode, she details the experience of surrendering devices, receiving early access to budget documents, and attending press conferences with key government figures like Treasurer Jim Chalmers and Finance Minister Katy Gallagher.

She delves into the major reforms, policy decisions, and political trade-offs that shape the government's biggest financial announcement of the year.

She also highlights the rare chance to speak directly with Treasury officials and MPs. These conversations offered valuable insight into the thinking behind key policy decisions. They also revealed just how complex it is to manage a national budget fairly and effectively.

What the Federal Budget is (and why it matters)

As Tash explains, "The budget is just the government’s yearly money plan." It outlines how much the government expects to earn, how much it plans to spend, and where that money will go. The budget also includes projections about the economy over the next four years, covering unemployment, inflation , wages, and GDP.

The goal? To strike a balance between spending that supports the economy and staying fiscally responsible. A budget can be in surplus (when the government earns more than it spends) or deficit (when spending exceeds earnings). Either outcome affects public debt and interest rates.

The 2025–26 budget was brought forward to March, ahead of the upcoming federal election – something that often shapes what’s in the budget. As Tash puts it, "The budget is often used to win votes," meaning election-year budgets can include extra handouts, cost-of-living relief, or temporary tax cuts.

Where the money comes from (and where it goes)

Revenue for the Federal Budget largely comes from:

• Income taxes
• GST
• Company taxes
• Superannuation taxes
• Excises on fuel, alcohol, and tobacco
• Fines, levies, and asset sales

Spending tends to focus on big-ticket areas like:

• Health (Medicare, hospitals, aged care)
• Education
• Social security (Centrelink, pensions)
• Infrastructure (roads, public transport)
• Defence and the NDIS
• Housing and cost-of-living support

Key budget highlights (and how they affect you)

Rather than unpacking every policy, Tash and Ana focus on some of the standout reforms that could have a direct impact on everyday Australians.

Tax cuts for all income earners

Starting 1 July 2026, the tax rate on incomes between $18,201 and $45,000 will drop from 16% to 15%, and then to 14% a year later. “It’s expected that people will save $268 a year initially, and then $536 a year from year two onwards,” Tash explains.

HECS debt relief

For younger Australians with student debt , there’s big news. “There’ll be a 20% reduction in HECS balances on June 1st, 2025,” Tash shares.

It’s not yet legislated, but funding has been set aside, which suggests it’s a strong possibility.

Electricity bill rebates

Households and small businesses will receive an extra $150 in electricity bill rebates, automatically applied from 1 July 2025 in quarterly instalments.

According to Ana, “The Treasury estimates this relief will cut household bills by 7.5% and reduce inflation by half a percentage point.”

Housing reforms

To improve affordability, foreign buyers and temporary residents will be banned from purchasing existing homes in Australia for two years.

The government is also expanding the Help to Buy Scheme, which allows people to purchase a home with a smaller deposit while the government owns a share of the property.

Additionally, rent assistance is being increased by 45% for about 1 million households.

Ban on non-compete clauses

A major win for workers: the government is banning non-compete clauses for Australians earning under $175,000.

“These clauses have widely been used in industries such as childcare or construction or hairdressing,” Ana says. They’ve been criticised for limiting mobility and suppressing wages.

Tash highlights the broader economic impact: “Research suggests the reforms could lift wages for affected workers by up to 4%, or $2,500 per year. The Productivity Commission has estimated this reform could increase annual GDP by $5 billion.”

Healthcare investments

The government is aiming for 90% of GP visits to be bulk billed by 2030, and average medicine costs are dropping from $31.60 to $25. Aged care nurses will also receive a pay rise.

There’s further investment in urgent care clinics, bringing the national total to 137. “You can go and pay… and you’re seen instantly, which is great,” says Tash. These clinics help ease pressure on hospital emergency departments.

There’s also $793 million in funding to improve healthcare options for women, including more medications being added to the PBS and greater access to contraception and menopause treatments.

Migration policy tightening

The government is forecasting a drop of 75,000 temporary migrants next financial year. “Net overseas migration is set to decrease from 335,000 this year to around 225,000 by 2026,” Ana explains.

The biggest cuts will affect international student visas, as both major parties aim to return migration levels to their pre-pandemic norms.

Behind the scenes: What it’s like inside the Budget lock-up

Tash was invited to attend the budget lock-up in Canberra, where journalists and select guests get early access to the budget under strict conditions – no phones, no Wi-Fi, and no early leaks.

“We were put in this room to read the budget stuff, which is amazing,” she says. She attended press conferences with Treasurer Jim Chalmers and Finance Minister Katy Gallagher and asked questions of Treasury officials.

One hot topic? Why income tax brackets aren’t being indexed to inflation. The response: “They won’t be indexing them anytime soon.”

According to Tash, the government prefers to keep those tax cut announcements for political wins rather than having them automatically adjust.

What didn’t make the cut?

Despite the wins, some areas missed out. “There was a lack of mental health funding,” says Tash, including no return to 20 subsidised psychology sessions under Medicare. These are still capped at ten.

Small businesses also saw little support, “unless you sell beer,” Tash jokes. The government is halting new excises on beer to help struggling hospitality venues.

And while there’s growing momentum for making financial advice more accessible, the reforms proposed so far fall short.

“Financial advice isn’t going to be more accessible anytime soon, which is disappointing,” says Tash.

Budgeting for 26 million people

The episode ends on a reflective note. “It’s not a small job to do a budget,” says Ana. “We know for ourselves it’s hard to budget, let alone for a whole country.”

With competing interests, lobbying, and political pressures, every decision involves trade-offs – often between what’s effective long-term and what’s politically popular in the short term.

“It’s a really hard job,” says Tash. “Imagine budgeting for 26 million people who all have different priorities."

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Happy investing!