What does the Federal Budget 2025—26 mean for you and your clients?
With a May election now confirmed, eyes around the country are turning to the Federal Budget on Tuesday 25 March 2025. The annual Federal Budget is fundamental for establishing the current and future economic direction of Australia and its wider community. This year, weeks out from the election, the timing is crucial in framing the policy settings under an Albanese government.
Last year’s Federal Budget saw limited tax measures announced, but included things such as:
- the extension of the small business $20,000 instant asset write-off for another 12 months
- changes regarding the foreign resident CGT regime
- the further funding of many ATO compliance taskforces.
The Tax Institute is hopeful that some key announced but unenacted measures (ABUMs) may be addressed to provide greater clarity and certainty to tax professionals and their clients. However, with this Budget anticipated to focus on cost-of-living and healthcare, that long-term vision for our tax system may not shine through.
Will this year’s Federal Budget be another missed opportunity, or will we take much needed steps toward fixing our tax system for a sustainable future? Stay tuned to find out