Federal Budget 2025: Jim Chalmers’ ‘unexpected’ Budget a chance for Labor to resell health pitch to voters

Australian Treasurer Jim Chalmers’ “unexpected Budget” has allowed Labor to resell its election health pitch to voters after the Coalition sought to previously mute the plan.

Australians struggling with the cost of medicines and seeing a doctor are among the big winners of Labor’s fourth Budget as it further pushed its health credentials on Tuesday.

The already-spruiked PBS and bulk-billing measures come alongside another 50 urgent care clinics, a $1.8B boost to public hospitals, and $793 million for women’s health.

Prime Minister Anthony Albanese hoped to use his headline $8.5 billion Medicare pledge as a springboard into calling an April 12 election at an announcement earlier this month.

Spent across four years, the money will go towards making nine out of 10 GP visits free by 2030 — equivalent to 18 million extra bulk-billed GP visits per year.

It will also fund 400 nursing scholarships and 2000 new GP trainees a year by 2028.

However, the commitment to increase bulk-billing incentives had been dampened just minutes later by opposition leader Peter Dutton who outbid the promise with a $9b pledge.

Coalition’s pledge includes $500 million more for mental health support.

Despite the matched commitment, Dr Chalmers told pre-Budget interview the looming election — to be held before May 17 — would be a “referendum on Medicare”.

Health makes up almost 16 per cent of Labor’s total spend on programs to the tune of $124.8B for 2025/26 – which would grow by almost $10B by 2028/29.

Australians hoping to see relief at the GP will, however, have to wait until November 1 for a re-elected Labor Government to implement the bulk-billing boost.

Cheaper medicines on the Pharmaceutical Benefits Scheme (PBS) are also on the agenda, with $689 million to be spent over four years.

Labor claims four out of five medications on the PBS will cost a maximum of $25, down from $31.60 — saving Australians a combined $200 million a year from January 1, 2026.

Pensioners and concession cardholders will still pay $7.70 for PBS medicines, with that price locked in until 2030.

The health measures are the centrepiece of the cost-of-living chariot Labor plan to ride to a May election, alongside tax and energy relief and rental and first-home buyer support.

“In every Budget including this one, we’ve made medicines cheaper,” Dr Chalmer said in his Budget speech on Tuesday evening.

“We know that Australians are still under pressure. More bulk-billing will mean less pressure on families.”

Dr Chalmers has also sought to treat Women’s health care as a “national priority” in the Budget rather than a “boutique issue”.

The Budget sets aside $792.9 million over five years to deliver lower costs, more choice and better healthcare for women

It includes adding menopause and reproductive health medicines to the PBS and dedicated endometriosis clinics.

The boost to Medicare urgent care clinics will bring the total to 137 nationwide.

Opposition Leader Peter Dutton will deliver his Budget-in-reply speech, which is expected to outline a new policy, in parliament on Thursday night.