We spoke to Australians about their hopes and concerns before, and immediately after, Jim Chalmers handed down his fifth budget.
Here’s what they told us.
Kate Heussler
Self-employed modelling coach, 42, Sydney’s northern beaches. Income: $150,000.
Budget wishlist: Heussler, who lives with her seven-year-old daughter Penelope, bought her first home last year using the first home buyers’ scheme.
“When people talk about the bank of mum and dad, I’m like, what’s that? I’ve never had that.”
She was hoping the budget would deliver more for single parents and others struggling with the increased cost of living.
Budget reaction: While she understood the government had to contend with extraordinary global instability, Heussler would have liked to have seen more support for single parents and home owners in this budget.
“I haven’t seen anything for single mums or dads, which is disappointing. But to me, it’s a good start,” she said.
“I think they’ve done the best they can, given there are a number of situations that are completely out of their control.”
Rex Zhang
Academic, 29, Sydney’s inner west. Income: $80,000-$90,000.
Budget wishlist: Zhang teaches at several universities so he can meet the rent on his Glebe property, valued at $420 a week.
“The rent has increased significantly since 2022 and 2023 – 2023 was the year that it just went crazy,” Zhang said.
He wanted the budget to put downward pressure on rental prices.
Budget reaction: While Zhang would have appreciated more targeted relief for renters, he welcomed negative gearing and capital gains reforms as the start of a “positive direction” towards resolving the housing crisis.
“It’s good to see, it’s better than nothing,” Zhang said.
“It will help to hold people accountable who contributed to this crisis that affects young Australians.”
Brad and Elaine Seeto
Accountants, 45, Sydney’s northern suburbs. Income: $500,000 combined.
Budget wishlist: Brad Seeto recognises that most Australians are having a harder time in the cost-of-living crunch than he is.
He wanted to see income tax reform in this year’s budget.
“You’ve got people who are the engine room [of the economy] paying the most tax.
“They’re being slugged from all corners.”
Budget reaction: Seeto was disappointed by the tax reforms announced in the budget, believing middle income earners would continue to be “capped at their knees”.
He wanted to see more measures targeting Australia’s most wealthy, who he believes won’t be harmed by the latest announcements on negative gearing and capital gains tax.
“Tax is meant to be a redistribution to provide a safety net, and a portion of that market is wealthy and in my opinion don’t pay enough.”
Maximilian Flynn
Environmental engineer, 27, Melbourne’s inner south-east. Income: $100,000.
Budget wishlist: Flynn and his partner have moved in with his parents – and cut down on driving and entertainment – to save for a house deposit.
Flynn said the government’s five per cent deposit scheme, aimed at helping first home buyers, had paradoxically made his house hunt more challenging because it likely “bumped up” home values in his price range.
Flynn said he hoped the budget would address negative gearing: “It’s benefiting a bunch of very rich people, and definitely impacting our ability to buy a home.”
Budget reaction: Flynn said Tuesday’s budget made him feel more hopeful that he wouldn’t be competing with as many investors.
“Broadly speaking, all of the changes to the capital gains tax and negative gearing have been a massive want for young people for a really long time,” he said.
“Back when Bill Shorten proposed it, I was definitely excited for that opportunity.
“I think that finally eventuating makes a lot of sense.”
Rachel Medlock
Copywriter, 33, Melbourne’s northern suburbs. Income: $90,000-$110,000.
Budget wishlist: Medlock’s son, Sonny, is autistic and receives support through the NDIS.
The climbing cost of living has set back her and her partner’s plans to save for a house deposit because there’s little left over for savings.
Medlock worries Sonny will be among the 160,000 people cut off from the scheme.
Budget reaction: Medlock was frustrated with Tuesday’s budget.
Hearing that the majority of savings were to come from the NDIS made her incredibly frustrated.
“Autism is a significant and permanent disability. It’s not something that goes away as a child ages.
“Autistic children grow into autistic adults, so it’s definitely frustrating to hear that they will bear the brunt of that.”
Mitch Burnie
Landscape gardener, 32, Sydney’s south-east. Income: $100,000.
Budget wishlist: Burnie, who lives with his wife and their two-year-old, bought an electric vehicle a little over a year ago after learning about novated leases.
“I thought it made so much sense. We always wanted an electric vehicle, but didn’t have $100,000 to purchase one outright,” he said.
The Sydneysider had hoped EV tax incentives would be retained in the May budget given the ongoing fuel crisis: “It’s rare that I’ve seen a government policy make such a tangible difference [to my household finances].”
Budget reaction: Burnie was a little disappointed that EV tax breaks are being wound back.
“I probably couldn’t afford it,” he said if he was in the same position today.
From April 1, 2027, electric vehicles priced between $75,000 and $91,387 will get a 25 per cent discount on their fringe benefit tax – down from the current 100 per cent reduction.
Existing leases will not be impacted by the changes.
David Warburton
Small business owner, 40, Bacchus Marsh. Income: $150,000.
Budget wishlist: Warburton owns a small mortgage brokerage and lives with his two children, aged seven and three.
He’s hoping the government avoids further cost-of-living handouts, which could push inflation higher.
“I suppose it feels good temporarily, but then we’ll just be having the same old conversation six, 12 months down the track.”
Budget reaction: Warburton was pleasantly surprised by the government’s announcement that it would make the instant asset write-off permanent.
“The write-off works really well if it’s at that moment when a business needs new equipment or a new ute or something like that.
“It gives businesses the confidence to make those big purchases.”
He was less convinced by the tax offset for working Australians: “I don’t think anyone’s going to get too excited by $250. It’s not really enough to help anyone out and may be potentially inflationary, too.”
