2025/26 Budget Changes

1. Personal Income Tax

• No change to tax rates or thresholds from 2024–25. Additional scheduled future cuts will apply from 2026.

2. Medicare Levy Low-Income Thresholds

• Thresholds will increase again for 2025–26 to provide further cost-of-living relief:

• Single threshold: up to $27,222.

• Families: up to $45,907 (increased amounts for dependants also apply).

• Seniors and pensioners: higher thresholds apply.

3. Energy Bill Relief

• Direct bill rebates for households and small businesses will continue.

• Households: two $75 credits off electricity bills until 31 Dec 2025.

• Small business: similar support measures, ongoing.

4. Student Debt Relief

• Legislation planned to reduce all outstanding HELP and student debts by 20% (pending passage).

• Repayment threshold will increase from $54,435 (2025) to $67,000 (2026).

5. Housing and First Home Buyer Schemes

• Expansion of the Help to Buy scheme, boosting income caps ($100,000 individual, $160,000 joint/single parent).

• Increased and regionally linked property caps.

6. Other Measures

• Foreign Ownership Restrictions: Two-year ban on foreigners buying established dwellings (from 1 April 2025).

• Tax Integrity Funding: Increased ATO funding for compliance, targeting the shadow economy and tax avoidance.

• Support for Small Business: Additional funding for franchisee and social enterprise loans, and measures to protect small businesses.

7. Superannuation Guarantee (SG) Rate—2025 Onward

• From 1 July 2025, the Super Guarantee rate rises to 12%.

  • Employers must contribute 12% of ordinary time earnings to superannuation for all eligible employees.

  • This is a legislated increase and represents the final step of the gradual SG schedule.