27/03/2025
💰From plans to reduce HECS debt to unexpected tax cuts for working Australians, here’s how Labor’s pre-election budget proposal could impact you.
Personal Tax Cuts: Starting from 1 July 2026, the tax rate for incomes between $18,201 and $45,000 will decrease from 16% to 15%, with a further reduction to 14% from 1 July 2027. Average worker ($79K/year) gets $5.15/week extra, rising to $10.30 in 2027-28.). More savings: $1922 back by 2026-27, $2190 by 2027-28.
Energy Bill Relief: Households and small businesses will receive a $150 energy rebate to alleviate cost-of-living pressures.
Medicare Enhancements: Establishment of 50 new urgent care clinics by mid-2026.PBS prescription costs capped at $25 to improve medication affordability.
Support for First Home Buyers: Expansion of the Help to Buy scheme, allowing the government to co-purchase up to 40% of a property's value.
Affordable Childcare for Families: Three days of fully subsidised childcare for families earning under $533,000, with the removal of activity test requirements.
Greater Job Flexibility: Non-compete clauses abolished for employees earning under $175,000, enhancing workforce mobility and entrepreneurship opportunities.
Aged Care Workforce Support: An additional $88.3 million allocated to fund wage increases following the Fair Work Commission's decision.
Boosting Australian-Made Products: A $20 million investment to promote locally manufactured goods.
Justice System Enhancements: A $21.4 million investment to improve court experiences for survivors of sexual violence.
NDIA Integrity Measures: A $175.4 million allocation to enhance fraud detection and safeguard NDIS funding.
Beer Tax Freeze: A two-year freeze on tap beer tax increases to support the hospitality sector.
⚠️Remember, many of these proposals could change as legislation passes through parliament.
You can find all Budget papers at https://budget.gov.au/index.htm
If you have any query, feel free to contact us.
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Australian Federal Budget, 2025-26
