The 2025–26 Federal Budget handed down on 13 May 2025 reflects a combination of fiscal restraint and targeted support measures, with a strong emphasis on cost-of-living relief, housing, health and aged care, and the transition to a net zero economy.

Here’s a summary of the key announcements. For the full report click here.

Personal Taxation

  • The Budget confirmed Stage 3 personal income tax cuts, with reduced tax rates and adjusted thresholds from 1 July 2024.

  • An increase to the Medicare Levy low-income thresholds applies from 1 July 2024.

  • No changes were made to superannuation tax settings.

Business Taxation

  • The $20,000 instant asset write-off for small businesses (turnover under $10 million) has been extended by 12 months to 30 June 2026.

  • An additional year of funding has been allocated to the ATO’s Personal Income Tax Compliance Program and its GST compliance program.

Cost of Living

  • From 1 July 2025, all Commonwealth Rent Assistance recipients will receive a 10% increase in the maximum rates.

  • $300 energy bill relief will be provided to every Australian household from 1 July 2025.

  • Eligible small businesses will also receive $325 in energy bill relief.

  • From 1 January 2026, Student HELP debts will be cut by changing the indexation method, resulting in a one-off reduction of $3 billion in student debt.

Housing and Infrastructure

  • The Budget includes over $11 billion in new housing initiatives, including:

    • An additional $1 billion for states and territories to build enabling infrastructure.

    • A further $1 billion for crisis and transitional accommodation for women and children fleeing domestic violence, and youth.

    • $88.8 million to support new housing developments on surplus Commonwealth land.

    • New incentives to build-to-rent housing by reducing the withholding tax rate on eligible investments from 30% to 15%.

Aged Care

  • $2.2 billion over 5 years has been committed to aged care, including 24,100 new Home Care Packages in 2025–26.

  • The Government will implement a new Aged Care Act from 1 July 2025.

Energy and Climate

  • $20.7 billion over 10 years for the Future Made in Australia initiative, including:

    • Support for clean energy industries like green hydrogen, critical minerals processing, and battery manufacturing.

    • A new National Interest Framework to target investment support.

    • A Hydrogen Production Tax Incentive ($6.7 billion) and Critical Minerals Production Tax Incentive ($7 billion) over 10 years.

    • A $1.7 billion Future Made in Australia Innovation Fund.

Rosenfeld Kant will continue to monitor policy changes and their implications for clients. For more tailored advice, and to learn more about how the Federal Budget may affect you or your business, please contact us on +61 2 9375 1200.