Now lawMoney & Tax Introduced in the House of Representatives, 30 Jul 2025

Parliament approved 2025-26 money for states and programs

This is the second main spending law for 2025-26. It covers money for the states and councils, brand new programs and big things like buildings. It came back after the 2025 election.

Official name: Appropriation Bill (No. 2) 2025-2026

Who it affects

• State and territory governments and local councils: Some of their federal money flows through this law. It comes from the education department, the infrastructure department and the National Indigenous Australians Agency. That agency runs federal programs for Aboriginal and Torres Strait Islander people.
• Government departments buying big things: Money for new buildings and big systems worth over $10 million comes from here.
• The Hindu community: The law includes $3.4 million to help build the first Hindu school in Australia.
• People using Disability Employment Services: This program helps people with disability find work. About $2.4 million more goes to Services Australia for it.

Spending beyond normal running costs

The government cannot spend public money unless Parliament agrees. All tax and other money the government gets goes into one pot. It is called the Consolidated Revenue Fund. A law has to say how much can come out and what it is for.

The Constitution is the top set of rules for how Australia is run. It says money for the normal running of departments must have its own bill. The first spending bill does that. This bill, Appropriation Bill (No. 2), covers everything else. An appropriation is money Parliament lets the government spend.

Everything else means three main things. There is money for states, territories and councils. There are brand new programs. And there are big purchases, like buildings or large computer systems.

An election stopped the first try

The 2025-26 version was first brought in on 25 March 2025. Three days later the House of Representatives was closed for the federal election. Any bill still waiting at that point dies. This is called lapsing.

A short stopgap law had already passed. It is called the Supply Act (No. 2). It gave about five twelfths of the year's money. That was enough to the end of November 2025. This bill brings back the rest, up to the end of June 2026. It also adds new Budget plans.

The government wrote notes to explain the bill. They say the new version is much the same as the old one. The changes add about $5.8 million.

The biggest change is $3.4 million for the Department of Education. It was an election promise. It helps build the first-ever Hindu school in Australia.

About $2.4 million goes to Services Australia for Disability Employment Services, because cost guesses changed. Another $50,000 goes to the Clean Energy Regulator for Cheaper Home Batteries, a program that helps pay for home batteries. That agency runs clean energy schemes.

Renamed and moved departments

After the election, the Governor-General signed a new list of which minister runs what. The Governor-General is the King's representative in Australia. The list took effect on 13 May 2025. More changes came on 1 July 2025. This bill shows the money under the new homes.

The Department of Health and Aged Care is now the Department of Health, Disability and Ageing. The National Disability Insurance Agency moved there. Sport moved to the infrastructure department, which added Sport to its name.

Some agencies moved from the Attorney-General's area to Home Affairs. The Attorney-General is the minister for law and courts. Home Affairs is the department for borders and security. They are the Australian Federal Police and the domestic spy agency. So did the agency that tracks dirty money. Services Australia moved to the Finance Minister's area.

What the words mean

The first part explains the words in the bill. It says the detailed budget papers for each department can help work out what the law means.

It also treats money moved between parts of the government as a real payment. No cash leaves the pot. But the spending still gets counted and can be seen.

Five kinds of money

A list at the back of the bill sets out the amounts. They come in five kinds.

The first is money for states, territories and councils. In this bill it goes through the Department of Education, the infrastructure department and the National Indigenous Australians Agency. Each amount is tied to a set goal.

The second is for new programs run for the government, such as grants or benefits. A program counts as new in three cases. Its goals might change. An agency might get this kind of money for the first time. Or it might have been paid for another way before.

The third pays for things owned and debts owed because of those programs. The fourth is called an equity injection. It pays for big items worth more than $10 million, such as a new building. It can also buy old and special items for national collections like museums and galleries.

The last kind is for government bodies that stand apart in law. These include some agencies and government companies. Their department passes the money on.

Finance Minister's emergency fund

The Advance to the Finance Minister is an emergency fund. It is for urgent costs that were missed or not expected. Under this law the limit for the year is $600 million. That includes anything already used under the Supply Act (No. 2).

Once this law starts, the Supply Act's fund can no longer be used. So the fund does not double.

Each use must be put online with a reason. It goes on the Federal Register of Legislation, the government's official website of laws. The Finance Minister puts out a public statement in weeks the fund is used. The Australian National Audit Office checks government spending. It reviews the fund each year.

Parliament cannot vote to cancel a use of the fund. The government's notes say that would leave departments short for other programs. They say both major parties agree.

Rules for state payments

Section 96 of the Constitution lets the federal government give money to the states with conditions. This bill passes that power to the ministers named in a list in the bill. They can set the conditions, the amounts and when the money is paid.

The notes say these choices are rare. Most money to the states goes through other laws and deals, such as the Federal Financial Relations Act 2009. That is the main law for regular federal payments to the states.

Say the education department is paying a state for a school project. The named minister could set when the money is paid. They could also set what the state must do in return.

This part also lets money move into other funds that are kept for the same purpose. The law switches itself off at the start of 1 July 2028.

Start date

The bill was brought into the House of Representatives on 30 July 2025. It was debated in September and October. The House passed it on 9 October 2025.

The Senate, Parliament's second house, got it on 27 October 2025. It passed it the next day. The Governor-General signed it into law on 29 October 2025. It became Act No. 48 of 2025 and started that day.

How they voted

Its journey through Parliament

Official sources

• Bill page on aph.gov.au
• Text of the bill
• Explanatory memorandum

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