Our take on the Federal Pre-Election Budget
When the Labour government brought the 25/26 Federal Budget forward from May to March, we thought there may be some good news for Business Owners.
But no, some meagre personal tax cuts, an extension of the energy rebate and no real investment in supporting small business, the back bone of our economy:
☕SMALL BUSINESS:
🚜 Instant Asset Write-Off:
The $20,000 instant asset write-off. This has been extended to 30th June 2025. This will then revert to $1,000 from 1 July 2025. The Coalition have indicated that they would make the instant asset write-off threshold permanent at $30,000. It will be interesting to see how this plays out in the coming weeks.
⚡ Energy Rebate Extended
- $325 relief extended to 31 December 2025
- Automatically applied to energy accounts
🏨 Help for Hospitality – about time
Some interesting concessions for our hospitality businesses.
🍻 Brewers, distillers and winemaker catch a break: The excise remission cap for is getting increasing—from $350K to $400K per year starting 1 July 2026.
🍷 Wine Equalisation Tax: is getting the same upgrade.
🍽️ Targeted support for venues: There’s funding for hospitality and regional tourism-focused businesses to help manage rising costs and staffing issues.
🍃 Energy efficiency grants: Grants of up to $25K for upgrades like fridges, heating, and ventilation systems. Time to swap the energy-guzzling oven for one that doesn’t break the budget—or the circuit.
🍺 Draft beer tax paused: The big headline? No indexation on draught beer excise from August 2025 to August 2027. Cheers to two years of price certainty on your beers.
🚫 BAN ON NON-COMPETE CLAUSES
Business owners cannot , include non-compete clauses in contracts for employees earning under $175K.
It’s meant to boost worker mobility and reduce wage pressure, but for employers, it means you’ll need to work harder to retain talent—because legally, they’re free to walk to a competitor the next day.
💸 FOR INDIVIDUALS: MINI TAX CUTS, ENERGY REBATES & A HELP DEBT WIN
🎉 Tax Cuts Coming in 2026–27 and 2027–28
- Income from $18,201–$45,000? Your tax rate will:
- Drop to 15% from 1 July 2026
- Drop again to 14% from 1 July 2027
💸 Result? Around $268 back in your pocket each year, and double that the year after. Probably will just cover a coffee ☺
💡 Energy Rebate for Households Continues
- $75 per quarter = $300 total
- Automatically credited to your electricity bill
- Running until December 2025
🎓 Student Debt? Big Win.
- 20% cut to HELP loan balances before indexation hits on 1 June 2025
- That’s a win for over 3 million Aussies
- If you’ve got student debt, this one’s worth a happy dance
👩👧👦 FAMILIES: LITTLE PEOPLE, BIG SUPPORT
- From Jan 2026: 3-day early childhood education guarantee—no activity test required
- Fee-free TAFE continues (construction, care, clean energy = priorities)
- Wage top-ups for early childhood educators and aged care workers
🧓 SUPER: The Political Nemesis
- No new announcements this year
- The extra 15% tax on super balances >$3M. This bill was passed by the lower house, but not the Senate, it has lapsed and it is now void, and a re elected Albanese Government will need to reintroduce this legislation and start the process again. With potentially a more hostile lower house.
- The 12% Super Guarantee rate still kicks in 1 July 2025
- Payday Super (SG paid at the same time as wages) starts from 1 July 2026
🔔 TAX PLANNING SEASON IS COMING…
It is hard to believe we are already in April. Only 3 months until 30th June and EOFY. Make the most of this and effectively plan to get the best outcome for this financial year, and set yourself up for success for the future.
Contact us to book an appointment.
Disclaimer: The information provided is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice