How does this government’s fourth budget, delivered amid election pressures, affect businesses and individuals?
In the lead-up to the Federal Election, Jim Chalmers’ 2025-26 Budget aims to juggle the realities of a return to deficit with the need to deliver cost-of-living relief to Australians. Previously unannounced tax cuts, along with an extension of the energy bill rebates, form the centrepiece of the cost-of-living relief measures. This is in addition to health and aged care spending measures, including a significant increase in Medicare funding to lift bulk billing rates and drive down the costs of medicines. In an effort to collect additional revenue, the ATO is again receiving large amounts of extra funding to bolster their task forces across all focus areas.
2025 Tax planning strategies and post-budget briefing
Join Todd Want, our Head of Tax along with experts Raffi Tenenbaum, Danielle Constantine, Nicola Bird and Charis Liew as they unpack the latest developments in tax after the Federal Budget, explore real-world implications and answer your questions.
Todd Want
Partner
Raffi Tenenbaum
Partner
Danielle Constantine
Partner
Nicola Bird
Partner
Charis Liew
Partner
2025 Tax planning strategies and post-budget briefing
Join Todd Want, our Head of Tax along with experts Raffi Tenenbaum, Danielle Constantine, Nicola Bird and Charis Liew as they unpack the latest developments in tax after the Federal Budget, explore real-world implications and answer your questions.
3 take-outs for SMEs
Energy Efficiency Grants
Grants of up to $25,000 for energy upgrades, includes replacing inefficient appliances and better heating systems.
Extend and expand ATO scrutiny
More money and resources for the ATO to clamp down on under-reporting income, tax avoidance and overdue tax and superannuation liabilities.
Banning non-compete clauses
Non-compete clauses to be banned for low and middle income employees to boost wage competition and increase freedom to work for competitors.
3 take-outs for SMEs
Extend and expand ATO scrutiny
More money and resources for the ATO to clamp down on under-reporting income, tax avoidance and overdue tax and superannuation liabilities.
Energy Efficiency Grants
Grants of up to $25,000 for energy upgrades, includes replacing inefficient appliances and better heating systems.
Banning non-compete clauses
Non-compete clauses to be banned for low and middle income employees to boost wage competition and increase freedom to work for competitors.
Key theme highlights
Cost of living
New tax cuts proposed, energy bill relief extended, and medicines made more affordable. Wages for aged care and early childhood workers will increase, while student loan debt will be reduced by $16 billion, with higher repayment thresholds.
Health and aged care measures
The Government is making significant investments in health and aged care, including $7.9 billion to expand bulk billing, cheaper PBS medicines, 50 new Medicare Urgent Care Clinics, additional public hospital funding, and workforce support for GPs, nurses, and aged care workers.
Insights from our budget spokespeople
“
Being an election year budget, this is a great opportunity for the government to introduce tax reform by simplifying our tax laws to benefit not only businesses but, more importantly, the broader Australian community.
Todd Want
Partner, Tax Services
“
We are looking forward to the government showing support for the Superannuation system by endorsing the final increase in the Superannuation Guarantee to 12%. The proposed additional tax on balances over $3 million continues to be controversial and we believe this might now become an election issue.”
Tricia Kleinig
Partner, Superannuation
“
We anticipate significant attention on cost-of-living measures for low- and middle-income families in this election-focused budget, which could potentially be inflationary and delay interest rate reductions in 2025. We are also closely monitoring the progress of the ‘Better Targeted Superannuation Concessions Bill’ for superannuation balances over $3m. If it fails to pass in the Senate before the Federal Election, we will be watching for any alternative high-balance superannuation taxation policies proposed in the budget.”
Scott Montefiore
Partner, Wealth Advisory
“
We expect a subdued budget, likely featuring targeted initiatives supporting sustainability and AI, as well as additional measures in line with the Government’s Future Made in Australia plan. However, we do not expect significant changes that could really move the dial for the tech sector, like expanding the R&D tax incentive or increasing employee share scheme concessions. Finally, if the Government saw fit to direct the Future Fund to invest in specific areas, then the tech sector surely deserves consideration.”
Jack Qi
Partner, Tax Services
“
Many general practices are struggling due to rising costs and we feel that the recent announcements by both parties to expand the bulk billing incentive won’t be enough to offset these costs. We’d still like to see an increase to Medicare rebates and incentives which could prevent closures and help reduce workforce burnout and shortages.”
Jennifer Rees
Principal, Business Advisory
“
Australia’s housing crisis is a supply crisis. The budget must promote fast-track planning reforms, unlock land for development, both greenfield and infill sites and invest in infrastructure that supports new housing. Without bold action, we’ll continue chasing a moving target on affordability.”
Kyle Wathen
Partner, Business Advisory
“
Currently, the scope of manufacturing initiatives by the government is limited to specific manufacturing areas and it is essential to expand their reach to support existing manufacturing businesses that are not in these priority areas. We would also like to see increased government support to help manufacturing businesses invest in new technology to future-proof our industries and enhance global competitiveness through either raising the threshold for instant asset write-offs or providing businesses with the financial relief or incentives needed to invest in new equipment and technologies.”
John Spender
Partner, Business Advisory
Insights from our budget spokespeople
“
We are looking forward to the government showing support for the Superannuation system by endorsing the final increase in the Superannuation Guarantee to 12%. The proposed additional tax on balances over $3 million continues to be controversial and we believe this might now become an election issue.”
Tricia Kleinig
Partner, Superannuation
“
We anticipate significant attention on cost-of-living measures for low- and middle-income families in this election-focused budget, which could potentially be inflationary and delay interest rate reductions in 2025. We are also closely monitoring the progress of the ‘Better Targeted Superannuation Concessions Bill’ for superannuation balances over $3m. If it fails to pass in the Senate before the Federal Election, we will be watching for any alternative high-balance superannuation taxation policies proposed in the budget.”
Scott Montefiore
Partner, Wealth Advisory
“
We expect a subdued budget, likely featuring targeted initiatives supporting sustainability and AI, as well as additional measures in line with the Government’s Future Made in Australia plan. However, we do not expect significant changes that could really move the dial for the tech sector, like expanding the R&D tax incentive or increasing employee share scheme concessions. Finally, if the Government saw fit to direct the Future Fund to invest in specific areas, then the tech sector surely deserves consideration.”
Jack Qi
Partner, Tax Services
“
Many general practices are struggling due to rising costs and we feel that the recent announcements by both parties to expand the bulk billing incentive won’t be enough to offset these costs. We’d still like to see an increase to Medicare rebates and incentives which could prevent closures and help reduce workforce burnout and shortages.”
Jennifer Rees
Principal, Business Advisory
“
Australia’s housing crisis is a supply crisis. The budget must promote fast-track planning reforms, unlock land for development, both greenfield and infill sites and invest in infrastructure that supports new housing. Without bold action, we’ll continue chasing a moving target on affordability.”
Kyle Wathen
Partner, Business Advisory
“
Currently, the scope of manufacturing initiatives by the government is limited to specific manufacturing areas and it is essential to expand their reach to support existing manufacturing businesses that are not in these priority areas. We would also like to see increased government support to help manufacturing businesses invest in new technology to future-proof our industries and enhance global competitiveness through either raising the threshold for instant asset write-offs or providing businesses with the financial relief or incentives needed to invest in new equipment and technologies.”
John Spender
Partner, Business Advisory
For commentary on the 2025 Federal Budget, please direct your enquiries to parth.sonecha@williambuck.com
