🚀 2025–2026 Federal Budget Breakdown 🚀
The 2025–2026 Federal Budget is out! Who's winning, who's losing, and who’s just... existing?
My Key 3 Must Knows:
💸 The $20,000 instant asset write-off is GONE! If you’ve been relying on those juicy depreciation deductions to lower your tax bill, it’s time to rethink your strategy. Talk to your accountant (aka, me) to see how this impacts you!
🎓 20% off your HECS debt! If you’ve got student loans, this is huge. The average HECS debt will shrink by around $5K. Finally, some relief!
⚡ $150 electricity rebate for small business… and that’s it. Yep, that’s all you get. Moving on.
Winners 🏆
Tax Cuts for Low Income Earning Individuals
💰 From 1 July 2026, the tax rate for incomes between $18,201 and $45,000 will drop from 16% to 15%, then to 14% in 2027. That’s a max of $536 extra in your pocket by 2027–2028, better than the nothing for everyone else I guess?
Tertiary Students & HECS Debt Holders
🎓 20% of your HECS debt? YES PLEASE! If you owe $27,600, that’s a $5,520 reduction. 💰 The repayment threshold also jumps from $54K to $67K, so you won’t start paying off your debt so soon. 📉 HELP indexation will now be tied to the lower of CPI or WPI, meaning no more nasty surprises. 🛠️ Free TAFE is here to stay, with 100,000 free spots per year from 2027.
Energy Bill Relief for Small Businesses
⚡ If you run a small business, you’ll get an extra $150 in energy rebates—extending relief until the end of 2025, Yay?
Support for Tradies & Apprentices
🔨 Tradies in construction (carpentry, bricklaying, etc.) score a $10K completion bonus. 👷♂️ Employers hiring apprentices in priority fields can pocket up to $5K.
Job Hunters
🚀 Non-compete clauses are banned for workers earning under $175K. ✂️ This affects 3M+ workers, from tradies to hairdressers to childcare staff.
Healthcare Investments
🩺 Bulk-billing incentives get an $8.5B boost over five years. The aim? Get 9 out of 10 GP visits bulk-billed by 2030. 💊 PBS-listed medicines will max out at $25 per script, so fewer heart attacks at the checkout.
Families with Kids in Childcare
👶 Moving towards universal childcare! The activity test is out, and families earning up to $530K get three days of subsidised care. 🏫 A $1B fund will build more childcare centres, prioritising those near schools. 💰 Early childhood educators will see a $3.6B wage boost. 🏫 Public schools will receive $407.5M over four years.
Women’s Healthcare
💊 Contraceptive pills on the PBS for the first time in 30 years. 🚺 More endometriosis & menopause clinics (from 22 to 33 nationwide). 💵 Menopause hormone therapies on the PBS = savings of "hundreds" per year.
Renters & First Homebuyers
🏡 The Help to Buy scheme expands—$800M to raise property price & income caps, with the government co-owning up to 40%. 🏗️ $54M invested in prefab & modular homes to speed up construction. 💸
NBN Customers
📡 Labor is committing $3B to finish the fibre-to-the-node project by 2030. 🚀 Internet speeds up to 1Gbps are coming your way (Netflix binge, anyone?).
Pub Patrons & Brewers
🍺 The draught beer excise freeze continues for two more years, saving brewers $95M. 💸 But your mid-strength pint still goes up by a cent. Cheers?
Losers (Or "Who Got Snubbed") 😬
Small Business Owners
🚫 The $20,000 instant asset write-off? Gone (again). Back to the $1,000 instant asset write-off.
Welfare Recipients
💸 No major JobSeeker increase—it stays at $55.79/day for singles, $59.75 for those with kids or over 55.
Lowest Income Earners
❌ Earn under $18,200? No tax cut for you (because you don’t pay tax). No alternative relief either.
Sheep Farmers
🐑 The live sheep export ban stays, effective May 2028. 💰 No new funding, but the $107M transition package remains.
Final Thoughts 💭
Some solid wins (HECS relief, tax cuts, childcare expansion), but small businesses and welfare recipients got left behind. Want to know how this impacts YOU? Let’s chat!
