Tax Tips

2025/2026 FEDERAL BUDGET HIGHLIGHTS – KEY TAX CHANGES

The 2025/2026 Federal Budget introduces significant tax updates for individuals:

• The marginal tax rate for incomes between $18,201 and $45,000 will reduce from 16% to 15% from 1 July 2026, with a further cut to 14% from 1 July 2027.
• Medicare levy low-income thresholds for singles, families, seniors, and pensioners will increase from 1 July 2024.
• Student loan debts will be reduced by 20%, with further reforms to the repayment system from 1 July 2025.
• The start date for strengthening the foreign resident CGT regime has been deferred to at least 1 October 2025.
• Restrictions on foreign ownership of housing will be introduced.

Please contact your accountant for any further information.