Part 2 – Specific Government Programmes - According to AFIA’s Strategic Priorities
Part 2 below outlines specific programs in the Budget which align with AFIA’s strategic priorities. These are:
A regulatory framework fit for the future – AFIA seeks to build a stronger economy through proportionate, scalable and targeted regulation.
Digital innovation and data – AFIA supports driving competition and innovation through use of technology and data.
Sustainability – AFIA champions a sustainable and timely transition to net-zero through green finance and ESG initiatives.
Financial inclusion and diversity – AFIA promotes diversity, equality and fairness through a more inclusive financial system.
A safe and transparent financial system – AFIA strives to build a more resilient economy through a safe and transparent financial system.
Strategic Priority 1 – A regulatory framework fit for the future – AFIA seeks to build a stronger economy through proportionate, scalable and targeted regulation
AFIA is committed to helping to build a strong economy by working collaboratively with the finance industry’s key regulators.
The total funding of the key regulators in the 2025-26 Budget is broadly commensurate with that in the 2024-25 Budget.
Altogether, the funding for the ACCC, ASIC, AUSTRAC, APRA and OAIC totals $1.982 billion.[1] This is up from $1.95 billion in the 2024-25 Budget.
The changes are as outlined below:
ACCC - $405 million, down from $453 million (Budget Paper 4, 104).
ASIC - $839 million, up from $831 million (Budget Paper 4, 105).
AUSTRAC - $249 million, up from $176 million (Budget Paper 4, 38).
APRA - $451 million, up from $452 million (Budget Paper 4, 104).
OAIC - $40.3 million, up from $38.3 million (Budget Paper 4, 40).
These increases in funding for economic regulatory agencies illustrate the Government’s priorities when it comes to regulation of the financial system. This includes
$207 million over two years from 2025-26 to ASIC to deliver the second tranche of stabilisation and uplift of their business registers.
$0.8 million in 2025-25 for Treasury to reform Australia’s financial reporting governance arrangements.
Of particular note is the overall $73 million dollar increase in funding to AUSTRAC’s budget of $249 million dollars, which plays a key role in enforcing Australia’s anti-money laundering and counter-terrorism financing laws.
Additionally, the Government is prioritising additional resources to Attorney-General's portfolio agencies, including an additional $8.7 million to the OAIC over three years to support enforcement activity, and $5.3 million in 2025-26 to continue its regulatory oversight of the Digital ID and Identity Verification Service programs.
Another cross-cutting priority of the Government is to strengthen tax compliance and minimise tax avoidance, as exemplified by the Government’s commitment to provide $999 million in additional funding over four years to the Australian Taxation Office (ATO), which is expected to increase tax receipts by $3.2 billion over the 5 years from 2024-25.[2]
Strategic Priority 2 – Digital innovation and data – AFIA supports driving competition and innovation through use of technology and data
AFIA supports the inclusion of extra funding investing in the future of science.
Furthermore, AFIA supports the extra investment of up to $3 billion over seven years in NBN Co to upgrade the remaining 622,000 National Broadband Network (NBN) premises on the national fibre-to-the-node network.
In our pre-budget submission, AFIA had advocated for tax incentives for cybersecurity assistance to help small businesses adapt to modern challenges, continued support for digital literacy and cybersecurity education initiatives for small businesses, and tax incentives for AI and digital transformation, including a targeted investment plan allowing businesses to claim a tax discount on eligible digitalisation and AI-related investments.
These measures are outlined in detail below.
Program title: Investing in the Future of Science
Page: 64
Description: The Government will provide funding to boost Australia’s capability and capacity in science, including:
$55.0 million over four years from 2025–26 to maintain the research capability of the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and to conduct research, including through partnership with other research institutions, into gene technologies to address the impact of invasive species on threatened wildlife in Australia
$47.9 million in 2025–26 as Australia’s contribution to address funding shortfalls for the Square Kilometre Array (SKA) project
This measure builds on the 2024–25 Budget measure titled Future Made in Australia Investing in Innovation, Science and Digital Capabilities.
Building Australia’s Future – Completing the NBN Fibre Upgrades
Page: 67
Description: The Government will provide an equity investment of up to $3.0 billion over seven years from 2024–25 to NBN Co to upgrade the remaining 622,000 National Broadband Network (NBN) premises on the national fibre‑to‑the‑node (FTTN) network with NBN Co also contributing more than $800 million to the project.
The additional investment will support more than 94 per cent of Australia’s fixed line footprint to have access to gigabit speeds by 2030.
The Government has already provided funding for this measure.
This measure builds on the 2022–23 October Budget measure titled Improving the NBN.
Strategic Priority 3 – Sustainability – AFIA supports a sustainable and timely transition to net-zero through green finance and ESG initiatives
AFIA is committed to measures which help our members and their customers lower their emissions and combat the impacts of climate change, with initiatives to support our economic transition.
AFIA strongly supports the Government’s $2 billion commitment of additional funding to the Clean Energy Finance Corporation (CEFC).
We also support the $100.3 million in savings through the redirecting of departmental funding, and $1.8 billion over two years to continue energy bill relief for households and small businesses.
Further detail on these programs is outlined below.
Program title: Strengthening the Clean Energy Finance Corporation
Page: 27
Description: The Government will provide $2.0 billion to recapitalise the Clean Energy Finance Corporation to invest in renewable energy, energy efficiency and low emissions technologies.
The Government has already provided funding for this measure.
Program title: Climate Change, Energy, the Environment and Water – savings
Page: 24
Description: The Government will achieve savings of $100.3 million over four years from 2024–25 by redirecting funding across the Climate Change, Energy, the Environment and Water portfolio. Savings include:
$75.0 million from the partial reversal of the 2022–23 October Budget measure titled Powering Australia – Driving the Nation Fund – establishment, by reducing uncommitted funding from the Hydrogen Highways program
$14.7 million from the partial reversal of the 2021–22 Budget measure titled Emissions Reduction and New Investments under the Technology Investment Roadmap, including reducing funding from the Strategic International Partnerships Investment Stream program
$10.6 million from the partial reversal of the 2020–21 Budget measure titled JobMaker Plan – securing Australia’s liquid fuel stocks, including reducing uncommitted funding for diesel storage projects not taken up by industry.
The Government has already provided partial savings for this measure.
The savings will be redirected to fund other Government priorities in the Climate Change, Energy, the Environment and Water portfolio.
Program title: Energy Bill Relief Fund Extension
Page: 75
Description: The Government will provide $1.8 billion over two years from 2025–26 to continue energy bill rebates of $75 per quarter for eligible Australian households and small businesses until 31 December 2025 to provide cost-of-living relief.
This measure extends the 2024–25 Budget measure titled Energy Bill Relief Fund – extension and expansion.
Strategic Priority 4 – Financial inclusion and diversity – AFIA promotes diversity and fairness through a more inclusive financial system
AFIA welcomes the government’s budget measures to promote diversity and fairness in the economy.
AFIA notes further tax cuts to provide cost of living relief valued at $17.1 billion over five years as well as an increase in the Medicare levy low-income thresholds valued at $648 million, which will support financial inclusion.
We particularly note increases in funding of $722.8 million to over four years to promote apprenticeships to enhance workforce participation, and $784.6 million over four years to lower the Pharmaceutical Benefits Scheme (PBS) general patient co-payment.
AFIA also particularly supports the measures designed to drive housing affordability, including $0.8 billion in additional investment in the Help to Buy program, as outlined below.
Measures related to our strategic priority of diversity and financial inclusion are below.
Program title: Personal Income Tax – increasing the Medicare levy low‑income thresholds
Page: 5
Description: The Government will increase the Medicare levy low‑income thresholds for singles, families, and seniors and pensioners from 1 July 2024 to provide cost‑of‑living relief. The increase to the thresholds ensures that low‑income individuals continue to be exempt from paying the Medicare levy or pay a reduced levy rate.
The increase to the thresholds is estimated to decrease receipts by $648.0 million over five years from 2024–25.
The threshold for singles will be increased from $26,000 to $27,222. The family threshold will be increased from $43,846 to $45,907. For single seniors and pensioners, the threshold will be increased from $41,089 to $43,020. The family threshold for seniors and pensioners will be increased from $57,198 to $59,886. The family income thresholds will increase by $4,216 for each dependent child or student, up from $4,027.
Program title: Personal Income Tax – new tax cuts for every Australian taxpayer
Page: 5
Description: The Government will deliver new tax cuts to every Australian taxpayer from 1 July 2026. These tax cuts are in addition to the first round of tax cuts for every taxpayer that the Government legislated last year, which have been rolling out since 1 July 2024. The new tax cuts will provide more cost-of-living relief and return bracket creep. They will also boost labour supply, particularly for women.
Under the Government’s new tax cuts:
From 1 July 2026, the 16 per cent rate will be reduced to 15 per cent.
From 1 July 2027, the 15 per cent rate will be reduced further to 14 per cent.
This measure is estimated to decrease receipts by $17.1 billion over five years from 2024–25.
Program title: Building Australia’s Future – Increased Support for Apprentices
Page: 41
Description: The Government will provide $722.8 million over four years from 2025–26 to deliver increased support for apprentices. 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 a further six months from 1 July 2025 to 31 December 2025
$11.0 million over four years from 2025–26 to increase the Disability Australian Apprentice Wage Support subsidy
$7.0 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.
In addition to this, the Government has increased the number of TAFE Centres of Excellence under the National Skills Agreement that are eligible to receive additional funding to fast‑track their establishment.
The Government has already provided funding for this measure. This measure builds on the 2024–25 Budget measure titled Australian Apprenticeships Incentive System – further support and the 2023–24 MYEFO measure titled Employment White Paper.
Program Title: Even Cheaper Medicines
Page: 46
Description: The Government will provide $784.6 million over four years from 2025–26 (and $236.4 million per year ongoing) to lower the Pharmaceutical Benefits Scheme (PBS) general patient co‑payment from $31.60 to $25.00 on 1 January 2026.
The measure extends the 2024–25 Budget measure titled Securing Cheaper Medicines and the 2022–23 October Budget measure titled Plan for Cheaper Medicines.
Program title: Restricting Foreign Ownership of Housing
Page: 6
Description: The Government will take action to ensure foreign investment in housing supports the Government’s broader agenda to boost Australia’s housing supply by:
Banning foreign persons (including temporary residents and foreign‑owned companies) from purchasing established dwellings for two years from 1 April 2025, unless an exception applies. Exceptions to the ban will include investments that significantly increase housing supply or support the availability of housing on a commercial scale, and purchases by foreign‑owned companies to provide housing for workers in certain circumstances.
Providing the Australian Taxation Office (ATO) $5.7 million over four years from 2025–26 to enforce the ban.
Providing the ATO and Treasury $8.9 million over four years from 2025–26 and $1.9 million per year ongoing from 2029–30 to implement an audit program and enhance their compliance approach to target land banking by foreign investors.
The ban will mean Australians will be able to buy homes that would have otherwise been bought by foreign persons, while encouraging foreign persons to boost Australia’s housing supply.
The enhanced compliance approach by the ATO and Treasury to target land banking will ensure foreign investors comply with requirements to put vacant land to use for residential and commercial developments within reasonable timeframes.
This measure is estimated to decrease receipts by $90.0 million and increase payments by $14.6 million over five years from 2024–25.
Program title: Additional Support for the Housing Services Sector
Page: 72
Description: The Government will provide $8.9 million over three years from 2025–26 to improve and expand support services for vulnerable Australians, including Australians experiencing housing insecurity and family, domestic and sexual violence. Funding includes:
$6.2 million over three years from 2025–26 to housing and homelessness peak bodies to undertake research, sector development and provide advice to Government on improving housing security for Australians at risk of homelessness
$2.5 million in 2025–26 to provide emergency accommodation for women and children experiencing family, domestic and sexual violence under the Safe Places Emergency Accommodation Program
$0.2 million in 2025–26 to extend funding for complex case management and provide wrap around support services for victim‑survivors of family, domestic and sexual violence.
The Government has already provided partial funding for this measure, and the remainder of the cost will be met from within the existing resourcing of the Department of Social Services.
Parts of this measure support the implementation of the National Plan to End Violence Against Women and Children 2022–32.
This measure builds on the 2024–25 MYEFO measures titled Housing Support, Ending Gender Based Violence – National Cabinet and Ending Gender Based Violence – additional investment.
Program title: Housing Support
Page: 75
Description: The Government will provide $58.8 million over five years from 2024–25 to increase support for housing, including:
$54.0 million over four years from 2024–25 to increase the supply and adoption of prefabricated and modular housing construction, including:
o $49.3 million over two years from 2025–26 to support states and territories to scale up existing projects for prefabricated and modular housing construction
o $4.7 million over four years from 2024–25 to develop a voluntary certification and rating scheme for prefabricated and modular housing manufacturers. Costs for the scheme will be recovered from industry from 2028–29 onwards.
$4.9 million over four years from 2025–26 to continue the Regional Home Guarantee and Family Home Guarantee streams of the Home Guarantee Scheme.
The Government will also provide $0.8 billion in additional investment in the Help to Buy program, bringing total equity investments to $6.3 billion, through increasing property price caps and increasing income caps from $90,000 to $100,000 for singles and from $120,000 to $160,000 for joint applications. This measure builds on the 2024–25 Budget measure titled Housing Support.
Strategic Priority 5 – A safe and transparent financial system – AFIA strives to build a more resilient economy through a safe and transparent financial system.
AFIA particularly welcomes the Government’s initiatives in this space, such as $6.7 million in additional funding to extend the National Anti-Scam Centre and $5.3 million in 2025-26 to the OAIC to continues its regulatory overside of Digital ID, additional funding to improve the security of critical infrastructure assets and assist owners and operators to respond to significant cyber-attacks, in addition to other agency and department resourcing.
We also support increased funding of $12 million over four years to protect small businesses, including for oversight of the Franchising Code of Conduct, and better targeted enforcement activities to deter illegal phoenixing.
AFIA has been advocating for greater collaboration between government and business to develop cyber-resilience, particularly in an environment of escalating risks. These programs covering investment in scams prevention, regulatory oversight and protecting small businesses are outlined in further detail below.
Program title: National Anti‑Scam Centre
Page: 76
Description: The Government will provide $6.7 million in 2025–26 to extend the operation of the National Anti‑Scam Centre within the Australian Competition and Consumer Commission to continue protecting consumers and businesses from scam activity.
This measure builds on the 2023–24 Budget measure titled Fighting Scams.
Program title: Attorney‑General’s Portfolio – additional resourcing
Page: 21
Description: The Government will provide $194.5 million over five years from 2024–25 (including $41.6 million in capital funding over three years from 2025–26) to support the delivery of Government priorities in the Attorney‑General’s portfolio, including:
$51.3 million in 2025–26 to sustain the operational activities of the Australian Criminal Intelligence Commission (ACIC) and enhance core capabilities to disrupt transnational, serious and organised crime
$8.7 million over three years from 2024–25 to the Office of the Australian Information Commissioner (OAIC) to support enforcement activity
$19.5 million in 2023–24 to continue work to improve the security of critical infrastructure assets and assist owners and operators to respond to significant cyber attacks
$12.2 million in 2023–24 to sustain cyber resilience of Commonwealth entities currently serviced by the Cyber Hubs pilot program and to continue assessment and certification of service providers used by the Commonwealth entities to host data.
$5.3 million in 2025–26 to the OAIC to continue its regulatory oversight of the Digital ID and Identity Verification Service programs
$3.4 million in 2025–26 to AGD and the Australian Institute of Criminology to strengthen counter‑fraud arrangements across the Commonwealth through the continuation of the Commonwealth Fraud Prevention Centre
$1.6 million in 2025–26 to AGD to continue law and justice capacity building in the Pacific
$1.0 million in 2025–26 to AGD to provide grants for community‑based projects to prevent modern slavery.
The cost of this measure will be partially met by redirecting funding from the Department of Defence and from uncommitted funding of the Office of the Special Investigator. The Government has already provided partial funding for this measure.
Program title: Small Business and Franchisee Support and Protection
Page: 77
Description: The Government will provide $12.0 million over four years from 2025–26 to support and protect small businesses. Funding includes:
$7.1 million over two years from 2025–26 for the Australian Competition and Consumer Commission to strengthen regulatory oversight of the Franchising Code of Conduct
$3.0 million over four years from 2025–26 for the Australian Securities and Investments Commission to improve its data analytics capability to better target enforcement activities to deter illegal phoenixing activities, particularly in the construction sector
$1.2 million in 2025–26 to partner with White Box Enterprises to establish a Social Enterprise Loan Fund to offer small loans to social enterprises, including work integration social enterprises, to support employment for disadvantaged Australians
$0.8 million in 2025–26 for Treasury to develop and consult on options to extend protections against unfair trading practices to small businesses and protect businesses regulated by the Franchising Code of Conduct from unfair contract terms and unfair trading practices.
The Government has already provided partial funding for this measure. The cost of this measure will be partially met from within the existing resourcing of the Treasury.
Program title: Treasury Portfolio – additional resourcing
Page: 78
Description: The Government will provide $219.2 million over four years from 2025–26 to support the delivery of Government priorities in the Treasury portfolio, including:
an increase in the cap on the Commonwealth’s guarantee of Housing Australia’s liabilities from $10 billion to $26 billion including support for commitments for projects under the Housing Australia Future Fund and the National Housing Accord Facility
$207.0 million over two years from 2025–26 to deliver the second tranche of stabilisation and uplift of the Australian Securities and Investments Commission’s (ASIC) business registers
$4.6 million over four years from 2025–26 to continue the National Housing Delivery Coordinator
$3.9 million in 2025–26 for the Australian Competition and Consumer Commission to extend the National Electricity Market Inquiry and enforcement activities to protect consumer price outcomes and ensure electricity providers comply with their obligations.
[1] These figures come from Budget Paper 4.
[2] See Budget Paper 2, 7.