Orange Book 2025: Australia’s Economic Blueprint & Policy Priorities

What is the Orange Book, and why does it matter in 2025? Australia’s political and economic landscape is evolving rapidly, and the Orange Book has become a touchstone for policymakers, business leaders, and everyday Australians seeking a roadmap to future prosperity. As we move through 2025, the Orange Book’s influence is evident in debates on tax reform, climate transition, housing affordability, and more.

What is the Orange Book?

The Orange Book is an independent policy blueprint produced by the Grattan Institute and other think tanks ahead of major federal elections. Its purpose? To provide a non-partisan, evidence-based set of policy recommendations to help Australia tackle the most pressing challenges of the day. Think of it as a ‘manifesto for reform’ that seeks to inform both government and opposition, as well as the broader public.

Each edition is updated to reflect the economic, social, and environmental realities of the time. In 2025, the Orange Book is especially significant as Australia faces global uncertainty, economic headwinds, and an urgent need for climate resilience.

• Policy Focus: The 2025 Orange Book covers tax, health, housing, education, energy, climate, and more.
• Objective: Drive bipartisan support for reforms that improve living standards and national competitiveness.
• Audience: Politicians, policymakers, business leaders, journalists, and engaged citizens.

Key Themes in the 2025 Orange Book

This year’s Orange Book is more than a policy wish list—it’s a call to action. Here are the central themes shaping Australia’s economic and social debate in 2025:

1. Tax Reform and Fiscal Sustainability

With the structural deficit deepening and federal budget pressures mounting, the Orange Book advocates for a comprehensive overhaul of the tax system. It calls for:

• Broadening the GST base and closing loopholes in capital gains tax.
• Reducing reliance on volatile income taxes.
• Addressing bracket creep and the impact of Stage 3 tax cuts, which came into effect in July 2024.

Example: The 2025 Orange Book points to international models—such as New Zealand’s simpler, broader GST—as a guide for a more sustainable revenue base.

2. Climate and Energy Transition

With Australia’s 2030 emissions targets fast approaching, the Orange Book makes a strong case for bold climate action and a managed transition to renewables. It urges:

• Scaling up investment in grid infrastructure and storage technologies.
• Accelerating the phase-out of coal-fired power while ensuring energy reliability.
• Supporting regional communities and workers as industries evolve.

Policy update: The federal government’s 2025 budget allocated $6.7 billion for renewable energy zones, echoing Orange Book recommendations for targeted public investment.

3. Housing Affordability and Supply

With rental and property prices hitting record highs in Sydney, Melbourne, and Brisbane, the Orange Book’s housing chapter is making headlines. It argues for:

• Planning reforms to unlock urban infill and boost medium-density supply.
• Phasing out stamp duty in favour of a broad-based land tax.
• Expanding social and affordable housing investment, leveraging federal-state partnerships.

Real-world impact: The NSW and Victorian governments are piloting land tax reforms, reflecting Orange Book priorities and shifting the national conversation on housing policy.

Orange Book in Action: Real-World Influence

The Orange Book is more than theory—it’s a catalyst for change. In the lead-up to the 2025 federal election, several policy proposals drawn from the Orange Book have gained bipartisan traction:

• Superannuation tax concessions are under review, with proposals to cap tax breaks for large balances.
• National Skills Agreement—informed by Orange Book’s education chapter—has seen new federal funding for vocational and digital skills training.
• Climate adaptation funds have been expanded, supporting communities at risk from bushfires and floods.

Business groups, unions, and NGOs frequently cite the Orange Book in submissions to parliamentary inquiries, making it a key part of Australia’s reform dialogue.

Why the Orange Book Matters for Everyday Australians

While the Orange Book is often discussed in policy circles, its recommendations have real-world consequences for Australians:

• Tax changes could affect take-home pay and government services.
• Climate policies will shape power bills and job opportunities in regional Australia.
• Housing reforms could determine whether younger generations can afford a home.

Staying informed about the Orange Book’s priorities helps Australians understand the direction of national debate—and the reforms that could shape our future prosperity.