In his speech to Parliament, Chalmers said that the world has changed as a consequence of a global pandemic, global inflation, and the threat of a global trade war. The global economy, he reflected, is volatile and unpredictable.

“Australia is neither uniquely impacted nor immune from these pressures, but we are among the best placed to navigate them. We’re emerging from this spike in global inflation in better shape than almost any other advanced economy,” Chalmers said.

“Growth is forecast to pick up from 1½ per cent this year to 2½ per cent in 2026–27. The private sector is resuming its rightful place as the main driver of this growth, with Treasury upgrading forecasts for growth in private demand to more than double next year, compared to this one. Unemployment is now projected to peak lower, at 4¼ per cent. Employment and real wage growth this year will be stronger, and participation will stay near its record high for longer.”

Treasury now expects, Chalmers continued, that inflation will be sustainably back in the band six months earlier than anticipated.

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“All of this means the soft landing we have been planning and preparing for is looking more and more likely. Because of our collective efforts, the worst is behind us, and the economy is now heading in the right direction,” he said.

Courts and justice system

Over the next few years, the expenses for courts and legal services are expected to remain “relatively stable”, other than a slight increase in expenditure over the next financial year for the Administrative Review Tribunal (ART) and migration-related legal matters.

The Administrative Review Tribunal was officially launched in October last year and was taken over from the former Administrative Appeals Tribunal (AAT) as part of a significant overhaul of Australia’s administrative review system. Last year, the government committed to providing $1 billion over five years to establish and support the launch and address backlogs in the court.

Another $21.4 million over three years was aimed at improving victim-survivor’s engagement with the justice system by both implementing targeted measures and informing a broader response to the Australian Law Reform Commission’s (ALRC) inquiry into justice responses to sexual violence.

In its pre-budget submission, the Law Council recommended the Federal Circuit and Family Court be “appropriately resourced” to administer information-sharing regimes, have its information resources and forms available in community languages, and facilitate the coordination of litigation guardians.

Similar recommendations were made – but do not appear to have been met – for the Australian Human Rights Commission, the National Commission for Aboriginal and Torres Strait Islander Children and Young People, the Fair Work Commission, and the Office of the Australian Information Commissioner.

The Law Council also requested funding to establish a Federal Judicial Commission, but this went unanswered.

“The establishment of a Federal Judicial Commission will be an important part of the developing integrity landscape at a Commonwealth level. This body should be established as soon as practicable, following a period of meaningful public consultation on any draft legislation,” the Law Council said.

Another recommendation overlooked in the budget was funding for the Australasian Legal Information Institute (AustLII) “to support its provision of access to legal information at no cost”.

Non-compete clauses

The federal budget release kicked off with a bang for the Australian workplace, with the Albanese government announcing the banning of non-compete clauses, which it claims “have no justification and drag down wages”.

Non-compete clauses operate to prevent workers from seeking or accepting new employment within an industry following the termination of their employment.

According to the government, more than 3 million Australian workers are currently covered by non-compete clauses, including childcare workers, construction workers, and hairdressers.

“Research suggests the reforms could lift the wages of affected workers by up to 4 per cent, or about $2,500 per year for a worker on median wages,” said a statement from Chalmers.

The ban will apply to workers who earn less than the high-income threshold ($175,000).

Just a week prior to the federal budget release, Australian Council of Trade Unions (ACTU) president Michele O’Neil mentioned the need to remove non-compete clauses during a debate with Australian Chamber of Commerce and Industry (ACCI) chief executive Andrew McKellar.

Now, O’Neil has lauded the actions of the government, stating: “Real wages are going up under the Albanese government, and this budget shows there is even stronger real wages growth on the way.”

“Three million workers are now looking forward to more freedom and higher wages because of the ban on non-compete clauses in employment contracts. Non-compete clauses have stopped workers changing jobs even if that job will pay them more or give them better conditions, driving down wages and stifling competition.”

Innes Willox, chief executive of the Australian Industry Group, argued that the budget “does not shift the economic dial”, hitting out at the move to ban non-compete clauses.

“The proposal to abolish non-compete clauses for many workers is also deeply concerning. It will undoubtedly lead to the difficult renegotiation of employment contracts and litigation where employers will seek to protect their intellectual property and customer base built up over years of risk and effort, which will now be threatened. This proposal is a disincentive to hire, train and upskill workers,” said Willox.

Attorney-General’s Department

A funding boost of $194.5 million will be directed to the Attorney-General’s Department over the next five years. This is in addition to expenditure to allow the department to increase the number of staff by 500.

For the first financial year, $54.4 million of the funding will support the work of the Office of the Special Investigator into war crimes committed by the Australian Defence Force, $51.3 has been directed to operational activities of the Australian Criminal Intelligence Commission, and $1 million to prevent modern slavery.

Just over $28 million will be spent over the next three financial years to establish a Commonwealth Parole Board, and another $8.7 million will support the Office of the Australian Information Commissioner’s (OAIC) enforcement activity in this same time frame.

The costs in this department will be partially met by redirecting funding from the Department of Defence and from the uncommitted funding of the Office of the Special Investigator.

The budget also set out that the Attorney-General’s Department would share in $21.2 million to continue initiatives to prevent, disrupt and combat child sexual abuse and maintain support services for the victims and survivors of child sexual abuse.

There are several court-related expenses the Australian government has considered in its budget, including the costs of resettling non-citizens in Nauru from Australian immigration centres, settlements for those who contracted Hepatitis C via blood transfusions between 1985 and 1991, and compensation under the Native Title Act 1993.

In September 2024, Gordon Legal filed an extension application to appeal settlement orders granted in the Prygodicz v Commonwealth class action, on behalf of those impacted by the robodebt scheme.

“Costs associated with the appeal (if any) and potential related future litigation are not quantifiable until the matter is determined by the court or otherwise resolved,” the budget set out.

Community legal centres

According to the 2025–26 budget, half of all services provided by community legal centres in 2023 went to victim-survivors of family and domestic violence, and 86 per cent of all family law grants provided by Legal Aid commissions involved allegations of family and domestic violence.

In September last year, the national cabinet committed an increase of more than $800 million in funding over the next five years to enhance legal services, which was the largest funding increase to the legal assistance sector in 20 years.

“The NAJP will provide $833 million over five years to community legal centres, with $275.7 million specifically for Women’s Legal Services and $366.8 million for Family Violence Prevention Legal Services. This funding will increase frontline specialist legal assistance to prevent and respond to the gender-based violence crisis, helping to keep women and children safe and accelerating the government’s efforts to end family, domestic and sexual violence in one generation,” the budget said.

The National Access to Justice Partnership (NAJP) was first announced in December 2024 but was met with concerns that the agreement fell short of recommended funding levels.

In its pre-budget submission, the Law Council of Australia said that significant funding should be committed to legal services under the NAJP agreement.

“Whilst the NAJP includes important additional and ongoing funding across all legal services, this increase is far from what is required to rectify significant shortfalls and to address the existing funding pressures on the legal assistance sector,” the submission said.

“The Australian government has a responsibility to adequately fund legal assistance. We acknowledge the current economic challenges faced at the present time, both domestically and globally. However, it is in tough economic times that legal assistance services are most vital and should be prioritised.”

Similarly, Community Legal Centres Australia (CLCs) said that $14.5 million in targeted funding for community legal centres assistance for the LGBTI community and $14.5 million for community legal centre assistance to vulnerable migrants, including asylum seekers and refugees was needed in the 2025–26 budget.

“Community legal centres in regional, rural, remote and very remote areas experience additional challenges in meeting the needs of the communities they serve. Legal need is greater in these areas, as is the cost of delivering services,” its submission said.

“The 2025–26 budget must improve access to justice for people in regional, rural, remote and very remote communities by investing $20.8 million in offsetting some of the challenges faced by community legal centres in those communities.”

Domestic and family violence

In the 2025–26 budget, the government is increasing its investments to end the “national crisis of gender-based violence” by providing additional funding to better support victim-survivors, strengthen justice system responses to sexual violence and supply crisis housing.

These budget initiatives bring the government’s investments to support women’s safety and deliver the National Plan to End Violence Against Women and Children 2022–32 to over $4 billion since the 2022–23 October budget. This is in addition to the $3.9 billion over five years from 2025–26 to establish a new National Access to Justice Partnership to support access to legal services, including for people experiencing gender-based violence. The government will also support the recruitment of 500 new frontline and community family, domestic and sexual violence sector workers nationally.

Additionally, $1 billion in funding will be provided to the National Housing Infrastructure Facility to support crisis and transitional accommodation for women and children experiencing domestic violence, and for youth experiencing, or at particular risk of experiencing, homelessness.

In response to national cabinet priorities, the government will invest $81.3 million over six years from 2024–25 for additional initiatives to support children and young people who have experienced family, domestic and sexual violence.

This includes $40.6 million over six years from 2024–25 (and $10.7 million per year ongoing from 2030–31) for the expansion of the Children Specific Counselling components in the Specialised Family Violence Service program, as well as $20.1 million over six years (and $5.6 million per year ongoing from 2030–31) to expand and extend funding to Aboriginal Community Controlled Organisations to provide culturally safe child-centred support to First Nations children and their families.

Further, $12.8 million over five years has been allocated for a targeted grants program for specialist and community support services to enhance and expand services to support victim-survivors of child sexual abuse and young people who are at risk of harmful sexual behaviours, with $6.8 million funding over three years to help provide specialised, longer-term support for children of separated or separating families affected by family violence.

In its 2025–26 pre-budget submission, National Legal Aid noted that while it welcomed the investment via NAJP, the funding did not expand Legal Aid Commission service delivery to victim-survivors of domestic and family violence – forcing the organisation to look at restricting certain services and access.

“Legal Aid commissions are the main providers of family law legal representation to people experiencing disadvantage, including victim-survivors, providing over 32,000 grants for legal representation nationally, 86 per cent of which include a risk of domestic and family violence. Legal Aid commissions are currently struggling to meet demand due to increased workloads resulting from the Federal Circuit and Family Court of Australia (FCFCOA) case management reforms, the recent Family Law Amendments and low fees provided to private practitioners. This is leading to a market failure risk,” the submission said.

Private practitioners deliver 72 per cent of all Legal Aid representation – and the organisation said it needs an additional $30 million per year to raise Legal Aid private practitioner fees to $200 per hour or 80 per cent of the court fee scale.

“In order to manage the ongoing market supply issues, Legal Aid commissions will look at raising the private practitioner fees to $200 per hour regardless as to whether funding is received. This is likely to result in service cuts to victim-survivors of domestic and family violence of approximately 9,200 grants per year, representing more than a 25 per cent reduction in services,” Legal Aid said in its submission.

Home ownership help

The Albanese government is also set to commit $33 billion to help build 1.2 million new homes before the end of the decade, including $54 million to accelerate the uptake of modern methods of housing construction.

“The first two rounds of the $10 billion Housing Australia Future Fund are helping build about 18,000 social and affordable homes for those who need them most, and lifting the cap on Housing Australia’s financial liabilities to $26 billion also helps here,” Chalmers said.

“We’re making sure new properties are well‑located and connected to the infrastructure they require. Our Housing Support Program is funding the crucial roads, water, and power these new homes need. Our national leadership is incentivising states and territories to reform their planning systems to accelerate new housing supply.”

Further, the Treasurer unveiled an expansion of its Help to Buy scheme by way of updating the property price and income caps from $90,000 to $100,000 for individuals and from $120,000 to $160,000 for joint applicants and single parents, so more first home buyers are eligible for the scheme.

This, he said, will help 40,000 Australians buy their first home in the next four years.

“The changes will mean they can access a bigger range of homes and buy one that suits them. And we’re easing pressure on the housing market by banning foreign investors from buying established homes, and cracking down on foreign land banking as well,” he told the House.

In a statement, Minister for Housing Clare O’Neil said: “Help to Buy takes years off the time it takes to save for a deposit. First home buyers on average rates with a $519,000 home will save about $900 per month when buying an existing home, and $1,200 per month when buying a new home.”

The announcement follows Chalmers’ direction last month to financial regulators to relax their positions regarding consideration of HELP (formerly HECS) debts when providing loans, thereby making it easier for Australians with such debt to responsibly take out a mortgage and buy a home.

At that time, Legal Home Loans director of sales Cullen Haynes said the move would help make home ownership “more achievable” for young lawyers with student debt.

Women’s health

Chalmers also noted that the government is “proud” to invest $793 million in women’s health.

This will, he suggested, create more choices, lower costs, and deliver better health care for women.

“This funding will help Australian women save on contraception, access more endometriosis and pelvic pain clinics, and receive better support through menopause,” he said.

“For our government, women’s health is not a boutique issue or a question of special interest – it is a national priority.”

The funding will come as a relief to many working women in law, particularly given the pervasive stigma about menopause.