The Albanese Government has unveiled the 2025-26 Federal Budget, focusing on initiatives aimed at easing cost-of-living pressures, strengthening healthcare, and fostering economic growth. Here’s our top things you need to know:
1. Cost-of-Living Relief
- Personal income tax cuts: Every taxpayer will receive tax relief, with lower-income earners seeing the biggest percentage benefit.
- Energy bill relief: Households and small businesses will get $75 per quarter in rebates through to December 2025.
- Cheaper medicine: PBS prescriptions will be capped at $25 from January 2026.
2. Healthcare & Medicare
- Medicare levy low-income threshold increased to provide relief for low-income earners.
- Expansion of bulk-billing incentives and more Urgent Care Clinics to reduce pressure on hospitals.
3. Business & Economy
- Small business support: Measures to help small businesses, including improved payment terms and stronger protections for franchisees.
- Boost for apprentices: Increased wage subsidies and financial support for apprentices in the housing sector.
4. Housing & Superannuation
- Foreign ownership crackdown: A two-year ban on foreign investors buying established homes.
- First home buyer support: Increased income and property price caps for the Help to Buy program.
- Superannuation changes: Super to be paid on Paid Parental Leave from July 2025.
5. Future Growth & Innovation
- Investment in clean energy and AI to support economic diversification.
- Increased funding for universities and TAFE to boost future workforce skills.
If you’re a business owner, then there are several key measures for small businesses, focusing on cost relief, regulatory protections, and incentives including:
1. Faster Payments & Business Support
- The government is promoting 20-day payment terms for certain contractors and subcontractors to ensure small businesses receive timely payments.
- Increased funding for apprenticeships:
- More wage support for apprentices, including additional subsidies for those with disabilities and those who need to live away from home.
- More wage support for apprentices, including additional subsidies for those with disabilities and those who need to live away from home.
2. Stronger Protections for Small Businesses & Franchisees
- $12 million over four years to support small businesses, including:
- $7.1 million to strengthen Franchising Code of Conduct enforcement.
- $3 million to help ASIC crack down on illegal phoenixing (dodging debts by shutting down and restarting businesses).
- $1.2 million for a Social Enterprise Loan Fund to provide small loans to social enterprises.
- $0.8 million for the Treasury to explore ways to extend unfair trading protections for small businesses.
- $7.1 million to strengthen Franchising Code of Conduct enforcement.
4. Support for the Hospitality Sector
- Two-year freeze on beer excise increases for draught beer (until August 2027).
- Excise rebate cap increase for brewers, distillers, and wine producers – raised from $350,000 to $400,000 per year (from July 2026).
6. Digital & Financial Reforms
- $207 million to stabilise Australia’s business registers, improving data quality for investors and creditors while strengthening efforts to combat illegal phoenixing.
- Reform of financial reporting rules to reduce red tape and improve financial governance for businesses.
This Budget sets the stage for the upcoming May 2025 election, aiming to balance short-term cost-of-living relief with long-term economic reforms.
