What the 2025-26 Federal Budget Means for You

The Federal Budget was presented in Parliament this week

The Federal Budget for 2025-26 has just been released, with several key measures aimed at providing cost-of-living relief and supporting households and businesses. We wanted to share the most important changes and how they might affect you.

Key Highlights:

Energy Bill Relief

• Eligible households and small businesses will receive extended energy bill relief until 31 December 2025. This includes $150 in relief, paid in two $75 instalments, to help with rising energy costs.

Tax Cuts

• From 1 July 2026, new personal income tax cuts will come into effect:

  • Income between $18,201 and $45,000 will be taxed at 15% (down from 16%).

  • This will reduce your tax by up to $268 in 2026-27 and up to $536 in 2027-28.

Healthcare Support

• Increased funding will expand Medicare Urgent Care Clinics to 137 nationwide.

• The Medicare levy low-income thresholds will rise from 1 July 2024, reducing or eliminating the levy for low-income earners.

• The general co-payment for Pharmaceutical Benefits Scheme medicines will reduce to $25 for individuals who don't hold a concession card.

Small Business Support

• The Government is increasing funding to improve regulatory oversight and protect small businesses from unfair trading practices. This includes enhancing the powers of the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC).

Help to Buy Program

• More first-time home buyers may now qualify with increased property price and income caps:

  • Singles: Income cap raised from $90,000 to $100,000.

  • Joint applicants: Income cap increased from $120,000 to $160,000.

Student Debt Relief

• From 1 June 2025, outstanding student debts under the Higher Education Loan Program (HELP) will be reduced by 20%. The minimum repayment income threshold will also increase to $67,000 from 1 July 2025, easing repayment obligations for many.

Child Care Subsidy Increase

• All families will be eligible for at least 72 hours per fortnight (three days per week) of subsidised childcare without having to satisfy the activity test.

If you have any questions or would like to discuss how these changes may impact your financial plan, feel free to reach out.

We're here to help you stay informed and make the most of any new opportunities.