The Centre for Future Work’s research team has analysed the Commonwealth Government’s budget.

As expected with a Federal election looming, the budget is not a horror one of austerity. However, the 2025-2026 budget is characterised by the absence of any significant initiatives.  There is very little in this budget that is new other than the surprise tax cuts, which are welcome given they benefit mostly those on low-incomes. There are continuing investments in some key areas supporting wages growth, where it is sorely needed, and rebuilding important areas of public good. However, there remains much that needs to be done in the next parliament.

This briefing paper reviews some of the main features of the budget, focusing on those aspects targeting and impacting on workers, working lives and labour markets.

The establishment of a $1 billion Green Iron Investment Fund to provide capital grants to green iron projects is a significant investment. With $500 million of this fund going to the troubled Whyalla steelworks this investment should ensure ongoing integrity in the management of this vital industrial asset. We believe the government should take a significant ongoing stake in the ownership of the Whyalla steelworks. The $2 billion Green Aluminium Production Credit, to incentivise Australian aluminium smelters to switch to renewable electricity before 2036, is a necessary and welcome policy to assist the transition to a low emissions economy. Unfortunately, the credit is not available until 2028-2029.

New and ongoing support for students in TAFE and in higher education are important cost-of-living measures while also making education and training more inclusive and accessible. There is some new funding for previously announced initiatives that support workers and wages growth and some funding for new wage increases in the female-dominated, and low-paid, aged care and early childhood education and care sectors; demonstrating the government’s commitment to addressing long-standing undervaluation of feminised care occupations. Continuing government support will be needed as the current Fair Work Commission review of awards to address undervaluation progresses.

Other reforms in ECEC, along with previously announced changes to paid parental leave and carer payments, provide welcome, but belated, support for working parents and carers. It is disappointing to see that the opportunity has been missed to raise Job Seeker and Youth Allowances from their grossly inadequate levels.