What was in the 2025 Federal Budget for businesses and industries?

Chalmers described the budget as “a platform for prosperity in a new world of uncertainty,” aiming to balance immediate support with long term economic health. 

So, what was in it for businesses and industries? We break down the standout measures and budget allocations relevant across various sectors, including manufacturing, construction, education, and healthcare.

General budget breakdown for businesses

First, let’s look at the broader announcements that will affect the business landscape.

In a bid to support Australia’s transition to a greener future, the budget includes fund allocation to support sustainable business practices:

• $1 billion over seven years for the Green Iron Investment Fund to fund green iron projects through capital grants to support producers to establish or transition into low emissions facilities in Australia.
• $2 billion to recapitalise the Clean Energy Finance Corporation to invest in renewable energy, energy efficiency and low emissions technologies.

Potential upsides

These funds could enable businesses to accelerate their adoption of sustainable technologies, ideally helping to position Australia as a leader in green innovation, while contributing to long term environmental goals.

Potential downsides

Smaller businesses may face difficulties accessing these funds. Some may argue they don’t go far enough to address climate change and environmental degradation.

Skills development and training

There are provisions for $2.7 billion to be spent supporting state skills and workforce development services to upskill the Australian workforce and close critical skill gaps, including:

• $2.5 billion through the National Skills Agreement.
• $202.3 million through other payments.

Potential upsides

The increased funding attempts to address the current skills shortage in key industries and prepare Australia’s workforce and businesses for the future.

Potential downsides

There are still challenges and questions around how these funds will be allocated to ensure equitable access. This may be particularly difficult in regional areas, where infrastructure may be lacking.

Industry specific announcements

Let’s take a brief look at healthcare, construction, education, and manufacturing.

Healthcare 

There’s a general focus on Medicare and increased funding for hospitals, aged care, and women, including:

• $7.9 billion  to strengthen Medicare with a goal of having 90% of general practitioner visits bulk billed by 2030.
• Incentives to increase the number of GPs, nurses, and midwives.
• $1.8 billion to fund public hospitals and health services.
• Funding to improve digital services such as MyHealth records and access to virtual healthcare.
• $792.9 million package to  enhance women’s health services.
• $292 million over five years to implement recommendations from the Royal Commission into Aged Care. An additional $88.3 million for wage increases for aged care workers.

Potential upsides

These initiatives could help healthcare facilities under pressure and improve overall health outcomes. This is particularly true for women and aged care recipients.

Potential downsides

While more funding is welcome for healthcare expansion, some warn that money alone is not enough to address chronic staff shortages, skill gaps, and high demand for health services.

Construction

The focus here generally revolves around infrastructure development and skills training. The budget makes a few notable commitments:

• $10 billion for infrastructure projects, including new hospitals, schools, and affordable housing.
• A plan to build 1.2 million new homes by 2030 addresses housing shortages and supports the construction industry.
• $500 million to expand apprenticeship and skills training, with a target of 50,000 new skilled workers over five years.
• The boosted $ 20,000 instant asset write-off tax benefit will cease on 1 July 2025, to be reduced to $1000.

Potential upsides

These investments may help create jobs and stimulate the economy, providing a welcome boost to the construction sector, while simultaneously improving public infrastructure across the country.

Potential downsides

Some industry leaders argue that while the funding is welcome, there are limited immediate measures to address short term workforce shortages, which could delay key projects. The end of the boosted $20,000 instant asset write-off will disproportionately impact tradies, who often use it to purchase work vehicles and other equipment.

Education

In education, there’s a focus on student debt and vocational training, with reforms that focus on equity and job readiness:

• $31.1 billion in recurrent funding for all schooling sectors, with a focus on supporting students and teachers.
• Further investment in free TAFE, with pledges to create 100,000 permanent and free TAFE places every year from 1 January 2027.
• Modernisation of the vocational education system, including new online learning platforms and stronger partnerships with employers.

Potential upsides

With these measures, more Australians have access to education, creating a more inclusive and diverse workforce, which in turn will also support Australian industries and businesses.

Potential downsides

From a critical point of view, it could be said that these collective reforms don’t go far enough to address the immediate skill gaps present in many industries.

Manufacturing

For manufacturing, the budget sets its sights on innovation and sustainability, with a significant focus on advanced manufacturing and future-proofing, such as:

• The next phase of an existing 22.7 billion Future Made in Australia fund with a sharper focus on cleaner, cheaper energy, and greater investment into infrastructure.
• $500 million for clean energy technology manufacturing capabilities.
• Fiscal support for manufacturers to reduce energy costs through subsidies.
• $20 million investment in initiatives to encourage consumers to buy Australian-made products.

Potential upsides 

These initiatives could encourage innovation and modernisation within Australia’s manufacturing sector, increasing Australia’s sustainability, while encouraging consumers to buy Australian products.

Potential downsides

Smaller manufacturers may struggle to meet funding criteria, or face challenges implementing new technologies. This disparity could potentially widen the gap between large and small businesses. The ‘Buy Australian’ measures have also been criticised as not substantial enough to make a large impact.

Time will tell how this budget plays out and what kind of positive impact it will have on Australian businesses.

* Federal budget announcements have not been legislated and may change. The information in this publication is for information purposes only and does not constitute legal advice.  For legal advice, please consult a qualified legal professional.