Federal Budget 2025 Update
On Tuesday, 25 March 2025, Treasurer Jim Chalmers handed down the 2025-26 Federal Budget.
The Budget’s main priorities are based on helping with the cost-of-living, building more homes, and investing in education. The Budget also includes two new personal tax cuts for all Australian individual taxpayers, increased Medicare levy thresholds, a ban on foreign individuals buying existing homes and a proposed reduction to student debts.
Being the government’s last Budget before this year’s federal election, the start dates of a number of previously announced but unenacted tax measures have been deferred until amending legislation is enacted.
Described by the Treasurer as a “plan for a new generation of prosperity in a new world of uncertainty”, the Budget did not include any new measures affecting the taxation or regulation of superannuation or new income tax measures affecting small businesses.
Just want the highlights? We’ve broken down the budget into the big news stories below if you’re reading this on the run!
Budget 2025 Highlights
A new tax cut for every taxpayer
The Medicare levy low‑income thresholds for singles, families, and seniors and pensioners will be increased from 1 July 2024
Student loan debts will be cut by 20% and other reforms will be made to the student loan repayment system from 1 July 2025
The start date of the 2024–25 Budget measure to strengthen the foreign resident CGT regime will be deferred from 1 July 2025 to a date to be advised after assent
Foreign ownership of housing will be restricted
Managed Investment Trust rules will be amended to ensure legitimate investors can continue to access concessional withholding tax rates from 13 March 2025
The start date of the 2023–24 Budget measure to extend the clean building managed investment trust withholding tax concession will be deferred from 1 July 2025 to a date to be advised after assent
Energy bill rebate extended until the end of 2025, providing an extra $150 of relief ($75 per quarter)
Child care subsidy – 3-day guarantee to replace activity test from January 2026
The banning of non-compete clauses for employees paid up to $175,000
If you would like to know how the 2025 – 2026 Federal Budget will impact you and your business, please do not hesitate to contact us on (03) 9069 7700 or info@mgidc.com.au
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