Federal Budget 2025-2026

The Federal Budget 2025-2026 was handed down on 25th March. The main tax and super
related measures contained in the Budget were:

• The marginal tax rate for the personal income tax threshold bracket from $18,201
  to $45,000 will be reduced from 16% to 15% from 1 July 2026 and further
  reduced to 14% from 1 July 2027.
• The Medicare levy low-income thresholds for singles, families, and seniors and
  pensioners will be increased from 1 July 2024.
• The ATO will be given $999 million in funding over 4 years to extend and expand
  its tax compliance activities.
• Tax practitioner regulation and compliance will be enhanced by strengthening
  sanctions available to the Tax Practitioners Board and modernising the
  registration framework.
• Payday super is set to begin on 1 July 2026. To support the change, the
  government is investing $404.1 million over four years from 2024-25 (and $11.2
  million per year ongoing).
• Eligible households and small businesses will provide two $ 75 bill rebates
  directly off their electricity bills until 31 December 2025 to provide cost- of- living
  relief.
• All outstanding Higher Education Loan Program (HELP) and other students loan
  debts (announced by Prime Minister on 3rd November 2024) will be reduced by
  20% subject t passing the legislation. The 20% reduction is in addition to recent
  indexation reforms. The Government is also increasing the amount the people
  can earn before they are required to start paying back their loans from $ 54,435
  in the 2025 income year to $ 67,000.00 in the 2026 income year.
• The Government will ban foreign persons (including temporary residents and
  foreign- owned companies) from purchasing established dwelling for two years
  from 1st April 2025, unless the exception applies.