On Tuesday 25 March, the Australian Government handed down the Budget for 2025-26. It was the fourth budget delivered by Treasurer Jim Chalmers, and it will also be the final budget by the current federal government ahead of a rapidly-approaching election.
Key announcements relevant to SaCSA’s stakeholders include:
• $722.8 million over four years from 2025-26 to deliver increased support for apprentices, along with a commitment to continue the consultation on a new Apprentice Incentive Scheme, following the release of the Strategic Review into the Australian Apprenticeship Incentive Scheme in January 2025.
• $165 million in tax relief for hospitality venues, brewers, distillers and wine producers, including a two-year freeze on the indexation on draught beer excise.
• $8.6 million in 2025-26 to extend the Revive Live program to support Australian live music venues and festivals showcasing Australian bands and artists. This funding will focus on improving accessibility and inclusion at live music events.
Further information on the key announcements can be found below:
Skills and Training
Apprenticeship Support
The Government will provide $722.8 million over four years from 2025-26 to enhance support for apprentices. This funding includes:
• $626.9 million over four years from 2025-26 to reframe the New Energy Apprenticeships Program as the Key Apprenticeship Program and expand it to capture critical residential construction occupations.
• $77.8 million over four years from 2025-26 to extend the current interim Australian Apprenticeship Incentive System program settings for an additional six months from 1 July 2025 to 31 December 2025.
• $11 million over four years from 2025-26 to increase the Disability Australian Apprentice Wage Support subsidy.
• $7 million over four years from 2025-26 to increase the Living Away From Home Allowance.
The Government’s package of reforms includes six months of consultation to support the development of a new ‘gateway model’ for the incentive system, with costs met from within the existing resourcing of the Department of Employment and Workplace Relations.
Additional Vocational Education and Training Commitments
TAFE Centres of Excellence Expansion
The Government has increased the number of TAFE Centres of Excellence under the National Skills Agreement that are eligible for additional funding to fast-track their establishment. A total of $31.6 million will be distributed to states and territories over the next three years.
Permanent Free TAFE
The Government has reaffirmed its commitment to having a highly skilled workforce for the future by making 100,000 Free TAFE permanent, with legislation currently being debated in Parliament.
HECS-HELP, FEE-HELP, and VET Student Loans Reform
The Government has introduced several measures to ease student debt burdens, including:
• A one-off 20% reduction in debt levels for graduates with existing debt.
• An increase in the minimum repayment threshold from $54,435 to $67,000.
• Compulsory loan repayments will be lower for graduates earning up to $180,000 per annum.
Strengthening the VET Sector
$4.7 million in 2025-26 has been allocated to support ASQA in countering fraud in the VET sector. Work is also underway on a national occupational licensing scheme for electrical trades to support workforce mobility in housing and net zero sectors.
Non-compete Clauses
The Federal Government has proposed reforms to ban non-compete clauses, which research indicates limit labour mobility and prevent workers from transitioning to better, higher-paying jobs.
- Currently, more than three million Australian workers—including childcare workers, construction workers, and hairdressers—are bound by these restrictive clauses.
- According to Productivity Commission modelling, removing these clauses could boost productivity, contribute $5 billion (0.2%) to GDP annually, and help reduce inflation.
Other Key Measures
- Franchising Code Enforcement – $7.1 million over two years to strengthen compliance.
- $165 million in tax relief for hospitality venues, brewers, distillers, and wine producers, including a two-year freeze on draught beer excise indexation.
- ‘Buy Australian’ Campaign – $20 million to encourage consumers to support Australian-made products.
- Income Tax Reductions – Lowering the first tax threshold from 1 July 2026, providing an annual tax cut of $268 for the average worker, increasing to $536 by mid-2027.
- Cost-of-Living Relief – Increased funding for PBS scripts, bulk-billed GP visits, and student debt reduction.
- Supply Chain Resilience – $17.1 billion over ten years to improve freight efficiency, including upgrades to the Bruce Highway (QLD) and Western Sydney region.
- Childcare Relief – A $1 billion investment to expand access and improve quality, guaranteeing three days of subsidised childcare per week.
- Small Business Support – Extended energy bill relief for around one million small businesses and stronger protections against unfair trading practices.
As always, SaCSA will endeavour to keep our stakeholders informed on government and policy decisions impacting our sectors.
Author: Shane Kocass, Policy Officer at SaCSA, analyses government policies, fosters meaningful engagement with government stakeholders, and assists in navigating the complex policy landscape to drive impactful outcomes.