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Australian Federal Budget insights 2025-2026

How will the Federal Budget 2025 impact your business and what challenges will it address?

Australian Federal Budget 2025-2026

Federal Treasurer, The Hon Dr Jim Chalmers MP, delivered his fourth consecutive Federal Budget on Tuesday, 25 March 2025, being the 2025-26 Federal Budget.

This Budget was always going to be shaped by the political reality of a Federal election that must be held by no later than 17 May 2025. As such, a focus on cost of living (e.g. energy cost relief), strengthening Medicare, and health were key initiatives. On the tax front, new personal tax cuts and an increase in the Medicare levy low-income thresholds for some groups maintained the focus on cost of living. There was also additional funding to extend or expand various tax compliance programs, as well as the deferral of some previously announced measures.

Our detailed analysis of the tax measures in the 2025-26 Federal Budget can be found under the headings below.

  • All Australian taxpayers will receive further personal income tax cuts from 1 July 2026.
  • The Medicare levy low-income thresholds will increase from 1 July 2024, providing additional cost-of-living relief to lower income individuals.

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  • Amendments will be made to the managed investment trust provisions to ensure legitimate foreign investors continue to access the concessional withholding tax rates.
  • Start date of previously announced clean building managed investment trust withholding tax concessions deferred.
  • No changes to private company deemed dividend rules.
  • No changes to small business tax concessions.

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  • Start date of the previously announced measure to strengthen the foreign resident CGT regime to be deferred (and no other changes announced).
  • No other multinational tax measures announced.

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  • Additional funding for the ATO to strengthen tax integrity.
  • Funding to enforce restrictions on foreign ownership of housing.

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In this section of our 2025-26 Federal Budget tax analysis, we outline the forward agenda for personal and business tax and superannuation measures yet to be enacted.

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Register for our Federal Budget tax briefing

Thursday, 27 March 2025 l 12:00-1:00pm AEDT

Register now

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