The 2025-26 Federal Budget: What It Means for Everyday Australians and Why You Should Have a Direct Say

The Albanese government's 2025-26 federal budget landed with a thud in May, delivering a mixed bag of wins and disappointments that will ripple through every Australian household. With $684 billion in total spending and a projected deficit of $28.3 billion, this budget makes choices that will affect your mortgage, your Medicare wait times, and your children's education funding. But here's the kicker: you had virtually no say in those choices.

The Big Numbers That Matter to You

Let's cut through the political spin and look at what this budget actually means for your wallet:

Housing Relief: The government has allocated $6.2 billion over four years for the Housing Australia Future Fund, aiming to build 40,000 new social and affordable homes. For the estimated 640,000 Australians on social housing waitlists, this represents about one home for every 16 people waiting. Whether that's enough depends on who you ask -and under direct democracy, we'd actually ask you.

Cost of Living Measures: The budget includes a $300 energy bill rebate for all households and up to $1,000 for small businesses. While welcome news for families facing power bills that have risen 23% over the past two years, critics argue this is a band-aid solution that doesn't address underlying energy market failures.

Medicare and Health: An additional $2.8 billion has been committed to Medicare, including funding for 58 new urgent care clinics and reduced prescription costs. With the average Australian waiting 34 days to see a GP, this investment aims to cut that time -but will it be enough?

The Choices You Weren't Asked About

Every budget involves trade-offs, and this one's no different. The government chose to:

• Maintain the Stage 3 tax cuts (modified from the original Liberal proposal), delivering $20 billion annually in tax relief
• Increase defence spending to 2.4% of GDP by 2033-34, adding $50.3 billion over the next decade
• Reduce funding for the Australian Renewable Energy Agency by $800 million
• Freeze indexation of fuel excise for another year, forgoing $1.1 billion in revenue

These decisions reflect the government's priorities, influenced by party politics, lobbying, and electoral calculations. But do they reflect your priorities?

The Direct Democracy Difference

Imagine if you -and every Australian -had been asked: "Given our fiscal constraints, should we prioritise tax cuts for high earners or additional funding for mental health services?" Or: "Would you rather see $50 billion spent on new submarines or on renewable energy infrastructure and education?"

Under a direct democracy system, these wouldn't be rhetorical questions. Our members would receive detailed, non-partisan briefings on budget options, engage in informed discussion, and vote on spending priorities. Our elected representatives would then advocate for those democratically determined priorities in Parliament.

Real-World Impact of Budget Decisions

Consider Sarah, a nurse from Western Sydney earning $75,000 annually. The modified Stage 3 tax cuts will save her about $1,200 per year, but her local hospital received no additional funding despite chronic understaffing. Would Sarah prefer the tax cut or better working conditions and patient care? Under traditional democracy, nobody asked her.

Or take Marcus, a tradesman from regional Queensland, whose small business employs four people. The energy rebate will help, but the lack of investment in regional infrastructure means his costs keep rising. The budget allocates $7.2 billion to city infrastructure but only $1.8 billion to regional projects. Did Marcus get a say in that split? Not really.

The Transparency Problem

This budget also highlights how traditional democracy obscures the real decision-making process. The headline spending figures don't tell you:

• How much influence mining industry donations had on tax policy
• Why $2.1 billion in aged care improvements announced last year was quietly pushed back
• How departmental efficiency dividends (budget cuts by another name) will affect service delivery

Direct democracy demands transparency. When our members vote on policy, they see the full picture -including who's lobbying for what and why.

Looking Forward: Your Role in Future Budgets

The 2025-26 budget is done and dusted, but the 2026-27 budget process starts now. Treasury is already modelling scenarios, departments are preparing bids, and interest groups are positioning themselves to influence next year's priorities.

Wouldn't you rather have a seat at that table?

Direct democracy doesn't mean endless referendums or government by opinion poll. It means informed, deliberative decision-making where every Australian has genuine input into the choices that shape our nation's future. It means budgets that reflect community priorities rather than political calculations.

Ready to have your say in how Australia spends your tax dollars? [Take our policy quiz](https://directdemocracy.com.au/quiz) to see how direct democracy could work for issues you care about, or [join us](https://directdemocracy.com.au/join) to help build a more participatory democracy where your voice truly matters.