The 2025–26 Australian Federal Budget brings both good news and some challenges, especially when it comes to managing personal debt. While the government has announced a second year of budget surplus and new support measures, it also expects national debt to grow in the coming years. This means it’s more important than ever for everyday Australians to stay on top of their own finances.
What the Budget Means for You
Here are some key points from the budget that could affect your personal finances:
- Tax Cuts for All: Every taxpayer will get a tax cut, which means a little more money in your pocket each pay period.
- Help with Student Debt: If you have a HELP or student loan, your balance will be reduced by 20% before June 1, 2025. Also, the income threshold before you start repaying will rise next year, giving you more breathing room.
- Cost-of-Living Support: The government is offering energy bill relief and other support to help with the rising cost of essentials.
Even with these changes, national debt is expected to increase, and interest rates may remain high. That’s why managing your own debt carefully is still very important.
Simple Tips to Manage Your Debt
- Check Your Budget: Take a look at your current spending. Cut back on non-essentials and make sure you’re living within your means.
- Use Government Help: Make the most of tax cuts, student debt changes, and energy rebates to reduce your expenses and free up cash.
- Be Smart About Student Loans: Keep track of the changes and think about whether it’s worth making extra payments before the 20% cut takes effect.
- Get Financial Advice: If you’re feeling overwhelmed, talking to a financial counsellor or advisor can help you make a clear plan.
Final Thoughts
The new federal budget gives some helpful relief, but rising national debt means we all need to be careful with how we spend and borrow. A bit of planning now can save you a lot of stress later. Keep informed, make use of the support available, and take steps to stay on top of your finances.
If you’re feeling overwhelmed by debt, our team is here to help—reach out and we’ll guide you through possible solutions. (Send us your contact details to get started).
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