Please find here our 2025 Federal Budget Update.
The Government has projected a 2025/26 deficit of $42 billion with Commonwealth net debt to rise to $1,022 billion (35.5% of GDP). Clearly, this pre-election Budget is aimed at wooing voters with cost-of-living measures, additional funding for Medicare plus changes to relieve the housing crisis.
Closer to home, the 2025 Budget does not include significant changes for our client stakeholders with some of the key impacts outlined below:
- Tax cuts with a reduction in the tax rate applicable to the $18,201 – $45,000 tax bracket in both the 2026 and 2027 financial years.
- An extension of the energy bill rebate during the 2025 financial year.
As the Government is firmly in election mode, it is not beyond possibility that additional announcements are made in coming weeks, along with both the formal Budget response and counter offers by opposition parties, particularly the Liberal party.
Clearly, with the imminent Federal election, the ability to swiftly legislate all the proposals contained within this Budget is limited.
Please do not hesitate to contact Allan, David or Matthew should you have any immediate queries in relation to the impact of the proposed Budget changes on your personal circumstances.