The treasurer has delivered the 2025 Budget and it is definitely a pre-election budget. Plenty of spending to entice voters and a deficit for the next 10 years.
A summary of the announcements relevant to the average person is:
- Modest personal tax cuts of up to $268 in the 2027 year and $536 in the 2028 year (I'm not sure how this helps with the cost of living this year!)
- Increase in the Medicare Levy Low Income threshold for 2025
- Discount on student debt and an increase in the income threshold before payment is required
- Expanding the Foreign Resident Capital Gains Tax Regime
- $150 per household energy bill relief (once again VERY modest)
- Expansion of the Help to Buy first home owners scheme by increasing both the income threshold and the property threshold (this scheme has not yet commenced and does have limited places and other requirements to satisfy)
- Restricting the foreign ownership of existing housing - subject to some exceptions
- Banning non-compete clauses for low and middle income earners
- Changing the tax settings for local manufacture and brewing of alcoholic beverages
- Additional funding for various government initiatives
If you want to read a more detailed report you can access our Budget 2025 Report.
L Jack & Associates 2025 Budget Report
Whilst the personal tax cuts passed through parliament yesterday most of the announcements are dependant on:
- Re-election of the existing government; AND
- Appropriate legislation being introduced and passed by Parliament
Based on past history we could be waiting a while - if ever!