Supply Bill (No. 2) 2025-2026

Current status

This bill became law on Mar 27th, 2025.

Policy area

Budget, tax & economy

What does this bill do?

The Act releases $10.919 billion from federal revenue so the government can keep paying for non-annual spending such as assets, loans and other liabilities in 2025-26.

Why was it introduced?

The gap was that the government needed money at the start of 2025-26 for non-ordinary annual services before the full-year appropriation bill passed. This bill releases interim funding from the Consolidated Revenue FundThe main federal money pool the Parliament draws from when it authorises government spending., lets urgent shortfalls be topped up within limits, and supports payments including some to states and territories.

Broader context

Australia’s regular budget process still required a separate supply package so government entities could keep operating from 1 July 2025 before the full-year appropriation bills were enacted, with this bill covering non-annual spending such as assets, loans and other liabilities. The bill responded by releasing interim funding, allowing limited urgent top-ups by the Finance Minister and supporting some payments to states and territories, then became law in late March 2025 so those arrangements were in place ahead of the new financial year.

Key criticism

The main recorded criticism was that the broader budget behind this supply bill was being rushed and should cut spending back to match revenue instead of proceeding as proposed. That case appeared narrowly through a defeated second-reading amendment from Pauline Hanson's One Nation, while no party represented in the debate is recorded as opposing the bill itself.

Who supported it?

Stephen Jones MP introduced this bill. It passed on the voices.

Introduced in House 25 Mar 2025
Passed House 25 Mar 2025
Passed Senate 26 Mar 2025
Became law 27 Mar 2025

Did it become law?

Yes

Became law 27 Mar 2025

Final passage

Passed without a counted vote

1 recorded amendment or procedural vote was found, but no counted vote on the bill itself was recorded.

Passage speed

2 days

From introduction to the latest recorded parliamentary step

Official record

View on APH

Parliament of Australia bill page

What does this bill do?

  1. The Act releases $10.919 billion from federal revenue so the government can keep paying for non-annual spending such as assets, loans and other liabilities in 2025-26.

  2. The Act lets the federal government send some of this money to states, territories and local councils for budget outcomes covered in the schedule, including areas like education, infrastructure and regional development.

  3. The Finance Minister can add funding during the year if an urgent need comes up that this Act did not cover properly.

  4. The Act caps those extra urgent funding decisions under this Act and Appropriation Act (No. 2) 2025-2026The separate spending law that this bill is paired with for part of the 2025-26 budget process. at a combined $600 million.

  5. The Act sets temporary borrowing limits of $5 billion and $37 billion for federal payments to states and territories, with the GSTThe tax the page refers to when explaining a borrowing limit that can change if GST receipts are higher than expected.-related limit able to rise if the GSTThe tax the page refers to when explaining a borrowing limit that can change if GST receipts are higher than expected. amount is higher.

Show source excerpts
  1. The total of the items specified in Schedule 2 is $10,919,452,000.
    Supply Act (No. 2) 2025-2026 final Act text
  2. (1) The amount specified in a State, ACT, NT and local government item for an outcome for a non‑corporate entity may be applied for the purpose of making payments to or for the States, the Australian Capital Territory, the Northern Territory and local government authorities for the purpose of contributing to achieving that outcome.
    Supply Act (No. 2) 2025-2026 final Act text
  3. (1) This section applies if the Finance Minister is satisfied that there is an urgent need for expenditure, in the current year, that is not provided for, or is insufficiently provided for, in Schedule 2:
    Supply Act (No. 2) 2025-2026 final Act text
  4. (3) The total of the amounts determined under subsection (2) of this section and subsection 12(2) of the Appropriation Act (No. 2) 2025‑2026 cannot be more than $600 million.
    Supply Act (No. 2) 2025-2026 final Act text
  5. (2) The debit limit for the current year for the purposes of section 16 of the Federal Financial Relations Act 2009 is $37,000,000,000.
    Supply Act (No. 2) 2025-2026 final Act text

Broader context for this bill

Australia’s regular budget process still required a separate supply package so government entities could keep operating from 1 July 2025 before the full-year appropriation bills were enacted, with this bill covering non-annual spending such as assets, loans and other liabilities. The bill responded by releasing interim funding, allowing limited urgent top-ups by the Finance Minister and supporting some payments to states and territories, then became law in late March 2025 so those arrangements were in place ahead of the new financial year.

  1. 25 Mar 2025

    Government says a supply package is needed for the start of 2025-26

    In the second reading speech, the government said the bill would provide about five-twelfths of 2025-26 estimates so programs and obligations could continue from 1 July 2025 before full appropriations passed.

    Hansard ↗
  2. 25 Mar 2025

    House passes the bill

    The House completed all stages of the bill on the day it was introduced, advancing the interim funding measure without delay.

    Parliamentary timeline ↗
  3. 26 Mar 2025

    Parliament passes the bill

    After moving through the Senate, the bill passed both houses in the same form, completing its parliamentary passage.

    Parliamentary timeline ↗
  4. 27 Mar 2025

    Royal AssentThe formal step that turns the passed bill into an Act of Parliament. turns the bill into law

    Royal AssentThe formal step that turns the passed bill into an Act of Parliament. on 27 March 2025 made the supply arrangements law well before the 2025-26 financial year began.

    Parliamentary timeline ↗
  5. 01 July 2025

    Interim funding period is set to begin

    From 1 July 2025, the Act was intended to let the Commonwealth keep meeting non-annual spending commitments and some payments to states and territories at the start of the financial year.

    Hansard ↗

How did it move through Parliament?

House Senate
Introduced 25 Mar 2025

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 25 Mar 2025

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

House second reading agreed 25 Mar 2025

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

House third reading agreed 25 Mar 2025

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 26 Mar 2025

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 26 Mar 2025

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Senate second reading agreed 26 Mar 2025

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Senate third reading agreed 26 Mar 2025

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Passed both houses 26 Mar 2025

Both houses passed the bill in the same form, completing parliamentary passage.

Finally passed both Houses

Assent 27 Mar 2025

The Governor-General gave Royal AssentThe formal step that turns the passed bill into an Act of Parliament., turning the bill into an Act.

The main case against this bill

The main recorded criticism was that the broader budget behind this supply bill was being rushed and should cut spending back to match revenue instead of proceeding as proposed. That case appeared narrowly through a defeated second-reading amendment from Pauline Hanson's One Nation, while no party represented in the debate is recorded as opposing the bill itself.

Recorded criticism was limited and aimed more at the budget’s fiscal settings than this bill’s mechanics.

Budget rushed and spending too high

A second-reading amendment argued the budget package linked to this supply bill was rushed and should be withdrawn and redrawn so spending was reduced to match revenue. The criticism went to the government's overall fiscal approach rather than a specific defect in the bill's appropriation machinery.

Raised by Pauline Hanson's One Nation, through Senator Roberts Source ↗

Recorded votes

How the bill itself passed

The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not final passage.

Passed

House passed the bill

House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

25 Mar 2025

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Passed

Senate passed the bill

Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

26 Mar 2025

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Amendments at a glance

Recorded amendment and procedural votes grouped by chamber. Expand a vote to see the party breakdown.

Senate

Defeated

Call to withdraw and redraw budget

Aye 3 No 42

Defeated 3 to 42. Support came from One Nation. Opposition came from Labor, Greens, Liberal Party, Australia's Voice, and minor parties and independents. Minor-party and independent votes were split.

26 Mar 2025

The amendment failed 3-42, so the Senate did not add that criticism to the second-reading motion before agreeing to the bill.

Party Recorded votes Aye / No
Labor 0 / 19
Greens 0 / 11
Unknown 1 / 4
Liberal Party 0 / 4
Independent 0 / 2
One Nation 2 / 0
Australia's Voice 0 / 1
Nationals 0 / 1

These are amendment votes, not the final passage vote on the bill itself. The bill passed both chambers on the voices.

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Stephen Jones

Australian Labor Party • MP 25 Mar 2025

Stephen Jones supports the bill, saying it is needed as part of the supply package to keep government programs and obligations funded from 1 July 2025 until the main 2025-26 budget bills pass.

Read in Hansard ↗

All speeches by bloc

Labor

1 speaker · 1 support

Full record

Full chat