26 March 2025
Federal Warringah MP Zali Steggall has graded the 2025–26 federal budget a C+, criticising the government for failing to deliver meaningful tax reform or respond adequately to climate and environmental risks. Steggall—whose seat will expand to include North Sydney at the next election—said the budget demonstrated “cautious fiscal management in challenging geopolitical and economic circumstances” but lacked ambition on equity, climate resilience and reform.
Steggall highlighted a downgrade in Petroleum Resource Rent Tax forecasts, with revenue expectations cut from $10 billion to $6.3 billion by 2026–27, and accused the government of continuing to prioritise fossil fuel support. “Australia is collecting more tax from beer drinkers than from fossil fuel companies,” she said. Diesel fuel tax credits for mining companies are now projected to reach $46 billion, and Steggall criticised the government for again failing to wind back the scheme.
While she welcomed the extension of the $150 energy rebate, Steggall argued that its lack of means-testing undermined its efficiency. She supported ongoing investment in community batteries and the electrification of social housing, but called for stronger prioritisation of household renewable energy, particularly rooftop solar and battery programs, to achieve both cost-of-living relief and emissions reductions.
Steggall praised the government’s investment in women’s health, affordable childcare and emerging green industries, and backed the adoption of the Productivity Commission’s recommendation to ban non-compete clauses for low- and middle-income workers, saying it would improve labour mobility and productivity.
She also welcomed a modest increase in foreign aid, aligning with her calls for Australia to strengthen its regional leadership.
However, Steggall was scathing about the government’s response to climate and nature challenges. “Fossil fuels continue to receive six times the funding allocated to nature,” she said. “There is no meaningful investment in environmental protection, or additional funding for an EPA despite the enormous and growing fiscal impact of natural disasters.”
She pointed to the allocation of just $28.8 million over two years for disaster preparedness, contrasting it with the $13.5 billion recovery cost from Cyclone Alfred alone. “Piecemeal upgrades to roads in marginal electorates do not constitute a genuine resilience strategy,” she said.
Steggall also called for a broader definition of national security beyond military expenditure. “When disasters strike, fragile infrastructure turns climate shocks into prolonged crises,” she said. “True security means helping our neighbours build resilience before disaster strikes.”
She criticised the lack of any increase to JobSeeker or Youth Allowance and noted only a $2.5 million increase for domestic violence crisis accommodation, calling this “far below what is needed to address the scale of the crisis.”
With a federal election expected in May, Steggall said she would be watching the Opposition’s budget reply “with equal measure.”