2025-26 FEDERAL BUDGET Building Australia's future

Little focus on small business

The Government provided some support for small business, however there was very little in this year’s Budget in terms of business tax measures. There was also no mention of the proposed extension of the $20,000 instant asset write-off measures for 2024–2025.

Other key points included:

• $150 electricity rebate to small business
• $7.1 million over two years from 2025–2026 for the ACCC to strengthen regulatory oversight of the Franchising Code of Conduct.
• Employment contract non-compete clauses to be abolished
• Tax incentives for critical minerals and hydrogen production capabilities

• $999 million over four years to the ATO to extend and expand tax compliance activities.

No major superannuation measures announced

The only super item of note was some additional funding to extend an ATO Tax Integrity Program which is expected to raise an extra $31 million in unpaid superannuation from medium and large businesses and wealthy groups over five years from 2024–2025.

The Budget did not announce any change to the timing of the next (and final) super guarantee (SG) rate increase. The SG rate is currently legislated to increase from 11.5% to 12% on 1 July 2025.

Ease of cost-of-living pressures

The pre-election budget focused on ease of living measures and household consumption. Some of the key points included:

• Energy bill rebate extended until the end of 2025 - two instalments of $75 (for a total of an additional $150) for households and small businesses.
• Medicare levy low-income threshold increases for 2024-2025

• Changes to student debts for more than three million Australians. The measure will reduce outstanding student debts by 20% before indexation is applied on 1 June 2025 (subject to the passage of legislation) which will remove $16 billion in debt.
• Proposed system changes to ensure families are entitled to at least three days a week of subsidised early childhood education and care.
• Increased investment in the Help to Buy scheme to $6.3 billion (up $800 million), by increasing the income and price caps.
• The ATO will be provided $5.7 million over four years from 2025–2026 to enforce the ban on foreign residents from purchasing established properties.