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A Quick Reference For Australian Tax Rates And Related Information

A Quick Reference For Australian Tax Rates And Related Information

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Budget 2025 for 2025-26

Dr Jim Chalmers Federal Treasurer

The Australian Federal Budget for 2025 was handed down on Tuesday, 25th March 2025, by the Treasurer Dr Jim Chalmers

Key Budget Announcements

Tax Cuts: Personal tax rates

Adult tax residents rates:

tax cuts 2026 27 28
Image source: budget papers.

See also:

Medicare Levy Low Income Thresholds

Medicare low income thresholds have been indexed by 4.7% to take effect from 1 July 2024 for the 2024-25 year.

The increase to the thresholds ensures that low‑income individuals continue to be exempt from
paying the Medicare levy or pay a reduced levy rate.

  • The threshold for singles will be increased from $26,000 to $27,222.
  • The family threshold will be increased from $43,846 to $45,907.
  • For single seniors and pensioners, the threshold will be increased from $41,089 to $43,020.
  • The family threshold for seniors and pensioners will be increased from $57,198 to $59,886.
  • The family income thresholds will increase by $4,216; for each dependent child or student, up from $4,027.

Source: Budget papers

See: Medicare Levy Thresholds

Energy Bill Relief

Subsidy for households and small businesses extended to the end of calendar 2025 by a further $150 ($75 per quarter).

See: More energy bill relief for every Australian household and for small business | Treasury Ministers

Pharmaceutical Benefits Scheme (PBS)

From 1 January 2026, he maximum patient cost of medicines is to be lowered from $31.60 to $25.00 per script, and remain frozen at $7.70 for pensioners.

Instant asset write-off NOT extended

The Budget does not contain any extension of the boosted instant asset write-off (currently $20,000) beyond June 30, 2025. This means that in the absence of any further measures the write-off threshold falls back to $1,000.

Ban on non-compete clauses

The Government is banning non-compete clauses for most workers to enhance job mobility and increase wages, estimated to benefit over three million Australians. This reform aims to stimulate competition and productivity in the economy while allowing workers to pursue better employment opportunities without legal hindrances.

See: Cracking down on non-compete clauses to boost wages and productivity | Treasury Ministers

Student HECS/HELP Loan Adjustments

Proposed changes foreshadowed by the government were confirmed in the budget statements. They include:

  • One-off 20 percent reduction of the debt balance before indexation is next applied on 1 June 2025.
  • Increase the minimum repayment threshold for HELP and student loan debts from $54,435 in 2024-25 to $67,000 in 2025-26.
  • Repayments to be calculated only on the income above the new $67,000 threshold, rather than repayments being based on total annual income.

See also: HECS-HELP Repayment & Indexation Rates All Years

Deferred start date for foreign resident CGT measures

The Government has announced it will defer the start date for previously announced 2024-25 Budget measures, from 1 July 2025 to the later of 1 October 2025, or the first quarter after the amending legislation receives Royal Assent.

At the time of the Budget, draft legislation is not yet available.

The measures include:

  • clarify and expand the types of assets that give rise to taxable capital gains by foreign residents,
  • broaden the principal asset test to one that can be satisfied at any time in the 365 days prior to the CGT event, which results in disposals of shares or units by foreign residents taxable only if the market values of underlying company or unit trust’s assets are predominantly taxable Australian real property
  • require foreign residents disposing of shares and other membership interests exceeding $20m in value to notify the ATO prior to the transaction being executed.

Restricting foreign ownership of housing

(previously announced)

Foreign persons (including temporary residents) will not be able to purchase established dwellings for two years from 1 April 2025. The ATO will be provided funding to enforce the ban.

30% tax on super balances above $3 million (Div 296)

(previously announced)

The proposed 30% Division 296 tax, intended to apply from 1 July 2025, on gains on superannuation balances exceeding $3 million, was not mentioned in the budget statements.

Legislation is before parliament, but thus far has not received sufficient support to be passed.

Budget references:

This page was last modified 2025-03-27