Treasurer Jim Chalmers handed down his fourth budget in the Albanese government
Treasurer Jim Chalmers has handed down his fourth budget in the Albanese government – offering a number of reforms across different sectors. Here is a breakdown of some notable changes made that you should be aware of:
A notable reform is the proposed ban on non-compete clauses for employees earning below $175,000 annually. This change is designed to allow over three million workers - including those in sectors like childcare, construction, and hairdressing - to pursue better-paying opportunities without contractual restrictions.
The government anticipates that this measure will boost productivity, reduce inflation, and potentially increase GDP by $5 billion. The change is also set to create a wage lift of around 2 and 4 percent – equivalent of up to $2500 a year for affected workers on median wages, according to The Australian Financial Review.
The government say they’re also closing loopholes in competition law that allow businesses to make arrangements that cap workers’ pay and conditions without the knowledge and agreement of those affected workers.
The Budget allocates $68.6 million over five years to enhance the Digital Services Contact Centre, supporting individuals using Workforce Australia Online services. Additionally, $32.1 million over four years has been designated for the Real Jobs, Real Wages pilot - which will provide tapered payments to employers hiring individuals at risk of long-term unemployment. These initiatives aim to improve employment services and support workforce participation.
The government forecasts that wage growth will outpace inflation in the coming years, with real wage growth of 1.25% anticipated by 2027. This projection is based on expected economic conditions and policy measures aimed at supporting wage increases across various sectors.
“Stronger wage growth and moderating inflation have continued to drive growth in real wages,” according to the Chalmers.
The Treasurer announced a tax cut across the board of Australian taxpayers – meaning the average worker will be around $536 a year better off.
As reported by 9News reporter Chris Kohler, however, the phased approach will not begin until the middle of 2026.
Workers across the care sector – including aged care nurses – will see a further $2.6 billion in pay rises, as part of the government’s plan to broaden opportunities and increase equality. The move, described as “landmark”, will benefit sectors where most of the workforce are women – such as early childhood educators.
“The Government has also legislated to make gender equality an objective of the Fair Work Act 2009 and supports Fair Work Commission processes which seek to remedy the potential undervaluation of work in female dominated industries. This Government is also investing in women's health to deliver more choice, lower costs and better care for women,” the Budget reads.
The government plans to increase the APS workforce by 3,400 roles in the upcoming year, adding to over 40,000 positions created since Labor took office. This expansion, the government says, aims to reduce reliance on external consultants and contractors with significant growth in agencies such as the National Disability Insurance Agency, the Australian Taxation Office, and the Department of Defence.
