2025-2026 Australian Federal Budget Summary
The 2025/2026 Federal Budget outlines the Australian Government’s plans to strengthen the economy, provide cost-of-living relief, and invest in key areas such as healthcare, education, and infrastructure. This budget aims to support small to medium businesses, professionals, and regional communities, including North Queenslanders, through targeted initiatives and funding. Below is a detailed summary of the budget’s key points relevant to these groups.
Key Points for Businesses
Energy Bill Relief
The government is extending energy bill relief to the end of 2025, providing up to $150 in rebates for around one million small businesses. This is part of a broader effort to reduce energy costs and support small businesses in managing their expenses.
Support for Hospitality and Alcohol Producers
The government is pausing indexation on draught beer excise and excise equivalent customs duty rates, and increasing support under the Excise remission scheme for manufacturers of alcoholic beverages and the Wine Equalisation Tax Producer rebate. This is estimated to decrease receipts by $165 million over five years, providing financial relief to the hospitality sector.
Energy Efficiency Grants
The Energy Efficiency Grants for Small and Medium-Sized Enterprises program offers $56.7 million in grants of up to $25,000 to over 2,400 businesses. These grants fund energy upgrades, such as replacing inefficient appliances and improving heating systems, helping businesses reduce their energy consumption and costs.
Digital and Cyber Security Support
More than $60 million has been committed to help small businesses enhance their digital and cyber security capabilities through various programs, including the Digital Solutions program, Cyber Wardens program, Small Business Cyber Resilience Service, and Cyber Health Check.
Key Points for Individuals
Tax Cuts
New tax cuts are being introduced for all Australian taxpayers, with reductions in the tax rate for income between $18,201 and $45,000 from 16% to 15% in 2026 and further to 14% in 2027.
Student Debt Reduction
The government is reducing all outstanding Higher Education Loan Program (HELP) and other student debts by 20%, benefiting 3 million Australians. This will provide immediate cost-of-living relief for individuals with student loan debts.
Medicare Enhancements
Significant investments are being made to strengthen Medicare, including $7.9 billion to increase bulk billing, $1.8 billion for public hospitals, and funding for additional GP training places and scholarships for nurses and midwives. These measures will improve healthcare access and affordability.
Key Points for North Queenslanders
Disaster Recovery and Resilience
The budget includes $80.6 million to support primary producers, small businesses, community facilities, and non-profits affected by the North and Far North Queensland Tropical Low. Additionally, $15 million is allocated for early recovery efforts after ex-Tropical Cyclone Alfred.
Infrastructure Investments
$7.2 billion is allocated for safety upgrades on the Bruce Highway, enhancing transport infrastructure and connectivity in North Queensland. This investment will improve road safety and support economic growth in the region.
Housing Support
The government is providing up to $10,000 for eligible apprentices in housing construction occupations, addressing workforce shortages and supporting the construction of new homes in North Queensland. This initiative will help meet housing demand and improve affordability in the region.
Energy Rebates
Starting 1 July 2024, the Government will provide $3.5 billion in energy bill relief, offering $300 rebates to over 10 million Australian households and $325 to around one million small businesses. This measure is expected to reduce headline inflation by about 0.5% in 2024-25 without adding to broader inflationary pressures. The Energy Bill Relief Plan has successfully moderated electricity price increases, which rose only 2% through the year to March, compared to a potential 14.9% increase without the relief. Additionally, wholesale electricity prices in the National Electricity Market fell 8% in the first quarter of 2024 due to the rollout of more renewable energy, supporting the Government’s 82% renewable energy target.
Temporary increase to the instant asset write-off
From 1 July 2025, the instant asset write-off threshold will revert back to (less than) $1,000. Currently, small businesses with an aggregated annual turnover of less than $10 million will generally be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use by 30 June 2025. The asset threshold applies on a ‘per asset’ basis, so small businesses can instantly write off multiple assets. Assets valued at $20,000 or more (i.e., which cannot be immediately deducted) can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year thereafter. The provisions that prevent small businesses from re-entering the simplified depreciation regime for five years if they opt-out will continue to be suspended until 30 June 2025.
For a copy of the full budget, please click here
**It is important to note that some of the measures in the 2025/2026 Federal Budget are pending legislative approval and may not be implemented as planned. The information shared is based on the proposed budget and may be revised.**