An analysis of the Commonwealth Government’s 2025-26 budget that focuses on the aspects targeting and impacting on workers, working lives and labour markets. It finds that the budget is characterised by the absence of any significant initiatives.

Key points

• The surprise tax cuts are welcome given they benefit mostly those on low incomes.
• 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 Whyalla steelworks this investment should ensure ongoing integrity in the management of this vital industrial asset.
• 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.
• 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.
• Reforms in early childhood education and care, along with previously announced changes to paid parental leave and carer payments, provide welcome, but belated, support for working parents and carers.
• The opportunity has been missed to raise Job Seeker and Youth Allowances from their inadequate levels.