26/03/2025
Federal Budget 2025-2026
Tax cuts and cheaper beer
In an election year, tax cuts have been announced. From 1 July 2026 the lowest tax rate will be reduced from 16% to 15% and then further reduced to 14% from 1 July 2027, saving taxpayers up to $268 in the 2026/7 year and $536 in the 2027-28 financial year.
In addition, the Medicare low-income threshold will be increased from 1 July 2024 – for singles from $26K to $27,222, and for families from $43,846 to $45,907. (This means more low-income earners, families, seniors, and pensioners won’t have to pay the levy - or will pay less.)
The other major cost of living relief is energy bill relief - $150 for households.
Support for Small businesses
The Energy Efficiency Grants for Small and Medium Sized Enterprises program is providing $56.7 million in grants of up to $25,000 to over 2,400 businesses to help fund a range of energy upgrades, like replacing inefficient systems and appliances.
Indexation on draught beer excise will be paused for 2 years from August 2025. In addition, the excise rebate for wine and beer will be increased from $350K to $400K.
The instant asset write-off has not been extended.
Tax, Superannuation and Financial Services Leader Susan Franks CA explains the tax measures in the Federal Budget and the impact on the profession.
