Click here for our full recap of the budget.
On Tuesday, 25 March 2025, Treasurer Jim Chalmers handed down the 2025-26 Federal Budget.
The Budget’s main priorities are based on helping with the cost-of-living, building more homes, and investing in education. The Budget also includes two new personal tax cuts for all Australian individual taxpayers, increased Medicare levy thresholds, a ban on foreign individuals buying existing homes and a proposed reduction to student debts.
MGI Adelaide is pleased to present our summary of the recently released federal budget and its implications for our clients.
In our role as your trusted advisors, we have thoroughly examined the budget and pinpointed significant announcements that could influence you and your business.
Some of the highlights include:
- A new tax cut for every taxpayer
- The Medicare levy low‑income thresholds for singles, families, and seniors and pensioners will be increased from 1 July 2024
- Student loan debts will be cut by 20% and other reforms will be made to the student loan repayment system from 1 July 2025
- The start date of the 2024–25 Budget measure to strengthen the foreign resident CGT regime will be deferred from 1 July 2025 to a date to be advised after assent
- Foreign ownership of housing will be restricted
- Managed Investment Trust rules will be amended to ensure legitimate investors can continue to access concessional withholding tax rates from 13 March 2025
- The start date of the 2023–24 Budget measure to extend the clean building managed investment trust withholding tax concession will be deferred from 1 July 2025 to a date to be advised after assent
- Energy bill rebate extended until the end of 2025, providing an extra $150 of relief ($75 per quarter)
- Child care subsidy – 3-day guarantee to replace activity test from January 2026
- The banning of non-compete clauses for employees paid up to $175,000
We hope that this summary will help you better understand the implications of the federal budget and make informed decisions about your financial future. If you have any questions or concerns, please do not hesitate to reach out to us.
