House debates
Wednesday, 30 July 2025
Bills
Appropriation Bill (No. 1) 2025-2026; Second Reading
9:18 am
Daniel Mulino (Fraser, Australian Labor Party, Assistant Treasurer) Share this | Hansard source
I move:
That this bill be now read a second time.
The Appropriation Bill (No. 1) 2025-2026, together with Appropriation Bill (No. 2) 2025-2026 and Appropriation (Parliamentary Departments) Bill (No. 1) 2024-2025, form the principal bills underpinning the government's 2025-26 budget.
These appropriation bills are substantially the same as the bills with the same names that were introduced into the 47th Parliament and lapsed on the dissolution of the House of Representatives before this year's federal election. The bills must now be reintroduced to provide the remaining seven-twelfths of annual appropriations for 2025-26 (that were not covered by the supply acts passed before the election) as well as the funding for the 2025-26 budget measures.
The reintroduced bills contain minor changes which reflect government decisions and estimate variations from the 2025 pre-election economic and fiscal outlook; two election commitments, including the $800 million saving for the first year of the government's further reducing spending on consultants, contractors and labour hire, and non-wage expenses election commitment; two terminating measures that were extended beyond 2024-25; machinery-of-government changes as a result of the Administrative Arrangements Order changes on 13 May and 1 July 2025; and direct appropriations to two new entities that will commence later in 2025—the Defence and Veterans' Services Commission and the Australian Naval Nuclear Power Safety Regulator.
The net effect of these changes is a $216.2 million overall reduction in the reintroduced bills from the lapsed bills.
Appropriation Bill (No. 1) seeks approval for appropriations from the Consolidated Revenue Fund of approximately $83.4 billion. Together with the Supply Act (No. 1), which commenced on 1 July 2025, this would provide the total funding of $169.5 billion for the ordinary annual services of the government in 2025-26.
Funding provided through this bill will support the following significant items.
The Department of Defence will receive close to $25.3 billion to implement the 2024 National Defence Strategy and 2024 Integrated Investment Program, including funding for the nuclear-powered submarines, support for military operations and other Australian Defence Force activities.
The Department of Health, Disability and Ageing will receive over $20.3 billion to implement various programs to improve the wellbeing and social and economic participation of people with disability, and ensure the current and future health needs of all Australians are met. There is funding of over $9 billion for the National Disability Insurance Agency to provide reasonable and necessary supports for National Disability Insurance Scheme participants. Funding also includes over $3 billion for aged-care services to provide support for older Australians with everyday living and other needs; approximately $1.2 billion for the health workforce; over $900 million for mental health and suicide prevention; over $800 million for primary health care quality and coordination; and almost $800 million for First Nations peoples' health.
The Department of Foreign Affairs and Trade will receive over $4.2 billion to advance Australia's international strategic and security interests, provide development assistance overseas and consular assistance to Australians abroad.
The Department of Home Affairs will receive over $3.2 billion to implement various programs to ensure Australia's security, prosperity and unity by safeguarding national security interests, improving cyber security and security of critical infrastructure assets, supporting law enforcement policy and operations, and maintaining Australia's cohesive multicultural society. The funding will also enable the department to maintain the integrity of the migration system, sustain visa processing capability, provide settlement services to refugees and migrants, and protect the Australian border.
No changes are proposed to the maximum amount of $400 million for the advance to the Finance Minister (AFM) provision in Appropriation Bill (No. 1), which enables the government to provide additional appropriations for urgent and unforeseen expenditure during 2025-26.
Details of the proposed expenditure are set out in the schedule to the bill, the explanatory memorandum, and the 2025-26 portfolio budget statements tabled in March.
This bill, along with Appropriation Bill (No. 2) and Appropriation (Parliamentary Departments) Bill (No. 1), must be passed before the end of November to ensure continuity of the government's programs and the operation of Commonwealth entities.
I commend this bill to the chamber.
Debate adjourned.
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