Labor has delivered a politically charged 2025 Federal Budget, centred on easing cost-of-living pressures while laying the groundwork for a return to deficit. Treasurer Jim Chalmers announced a $17.1 billion tax package aimed at low and middle-income earners, alongside a range of targeted spending measures. The budget comes ahead of an anticipated election later this year and includes support for households and small businesses, as well as large-scale investment in Medicare and education. The government is projecting a deficit of $27.6 billion for 2024–25, ending a two-year streak of surpluses and reflecting weaker-than-expected commodity prices and slowing global growth. The centrepiece of the budget is a staged reduction in the marginal tax rate for individuals earning between $18,201 and $45,000. The rate will fall from 16 per cent to 15 per cent from July 2026, and to 14 per cent from July 2027. Treasury estimates suggest these cuts will deliver annual savings of $268 in the first ...