{"id":16574,"date":"2025-03-26T12:32:37","date_gmt":"2025-03-26T01:02:37","guid":{"rendered":"http:\/\/quantiphy.com.au\/oldbackup\/?p=16574"},"modified":"2025-03-26T18:19:58","modified_gmt":"2025-03-26T06:49:58","slug":"budget-2025-26-show-me-the-money","status":"publish","type":"post","link":"https:\/\/quantiphy.com.au\/oldbackup\/budget-2025-26-show-me-the-money\/","title":{"rendered":"Federal Budget 2025-26: Show Me The Money\u00a0"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Government\u2019s big moment in the 2025-26 Federal Budget was the personal income tax cuts. Income tax cuts are a dazzling headline but in reality they deliver a tax saving of up to $268 in the 2026-27 year, with a tax saving of up to $536 from the 2027-28 year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the same time, the Australian Taxation Office has been allocated almost $1bn in funding to extend and enhance its compliance programs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Two previously announced measures of note that have not passed Parliament but remain in the Budget are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax on super accounts above $3m (a 30% tax on future earnings for superannuation balances above $3 million); and<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The $20,000 instant asset write-off for small business for 2024-25.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Both of these measures have stalled in Parliament and, assuming they are not approved in the final days of Parliament, will lapse when an election is called.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Budget 2025-26 is a budget for voter appeal with over $7bn in additional spending measures in 2025-26 and over $20bn across five years. Most measures extend previously announced and Budgeted items for another year. Key initiatives include:<\/span><\/p>\n<h4><b><br \/>\n<\/b><b>Energy<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$180bn to deliver a $150 energy bill rebate extension until the end of 2025.<\/span><\/li>\n<\/ul>\n<h4><b>Healthcare<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$8.5bn on Medicare for increases to Medicare payments, 50 new urgent care clinics, and a bulk billed GP service.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$1.8bn over 5 years for cheaper medicines on the Pharmaceutical Benefits Scheme.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$240m for women\u2019s health &#8211; reproductive health and menopause<\/span><\/li>\n<\/ul>\n<h4><b>Education<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$500m to provide a 20% cut to HECS-HELP debt for students, and a realignment of the repayment schedule to reduce the amount required to be paid (from 1 July 2025).<\/span><\/li>\n<\/ul>\n<h4><b>Housing<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$800m to expand the \u2018Help to Buy\u2019 scheme reducing the size of the deposit required to buy a home by co-buying with the Government.<\/span><\/li>\n<\/ul>\n<h4><b>Families<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Three days of subsidised childcare for families with young children (income tested) from 1 January 2026 replacing the Child Care Subsidy activity test.<\/span><\/li>\n<\/ul>\n<h4><b>Lifestyle<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">From August, the excise on beer will be frozen for 2 years.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Economically, trade tensions have magnified global uncertainty. Global growth is already subdued. The indirect effect of tariffs is estimated to be nearly four times as large as the direct effect on Australia, reflecting the relative importance of affected trade flows between Australia, China, and the United States.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Australia\u2019s economy is expected to grow, albeit slowly at 2.25% in 2025-26 and 2.5% in 2026-27.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Budget will be in deficit at -$42.1bn in 2025-26, before improving marginally but remaining in the red.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"color: #dc5629;\"><b>The team\u00a0<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Quantiphy team are available to assist you to capitalise on any of the Budget measures or minimise your risk.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As always, the detail is important so please let us know if we can assist.\u00a0<\/span><\/p>\n<ul>\n<li><b>Adam Blackman\u00a0<\/b><a href=\"mailto:adam@quantiphy.com.au\"><b>adam@quantiphy.com.au<\/b><\/a><\/li>\n<li><b>Phil Opit<\/b> <a href=\"mailto:phil@quantipjhy.com.au\"><b>phil@quantipjhy.com.au<\/b><\/a><\/li>\n<li><b>Steven Lin\u00a0<\/b> <a href=\"mailto:steven@quantiphy.com.au\"><b>steven@quantiphy.com.au<\/b><\/a><\/li>\n<li><b>Kieran Movsessian<\/b> <a href=\"mailto:kieran@quantiphy.com.au\"><b>kieran@quantiphy.com.au<\/b><\/a><\/li>\n<li><b>Joe Gluck<\/b> <a href=\"mailto:joe@quantiphy.com.au\"><b>joe@quantiphy.com.au<\/b><\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"color: #dc5629;\"><b>Individuals &amp; families<\/b><\/span><\/h2>\n<h3><b>\u201cModest\u201d two stage personal income tax cut<\/b><\/h3>\n<table style=\"height: 41px;\" width=\"798\">\n<tbody>\n<tr>\n<td><b>From<\/b><\/td>\n<td><span style=\"font-weight: 400;\">1 July 2026<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">The Government will provide a \u201cmodest\u201d tax cut to all taxpayers from 1 July 2026 and again from 1 July 2027.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The tax rate for the $18,201-$45,000 tax bracket will reduce from its current rate of 16%, to 15% from 1 July 2026, then to 14% from 2027-28 at a cost of $648m over four years.\u00a0<\/span><\/p>\n<p><b>The saving from the tax cut represents a maximum of $268 in the 2026-27 year and $536 from the 2027-28 year.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Medicare levy thresholds increased for low-income earners<\/b><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>From<\/b><\/td>\n<td><span style=\"font-weight: 400;\">1 July 2024<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">The Medicare levy low-income threshold exempts low-income earners from having to pay the levy. From 1 July 2024, the threshold for the exemption will increase.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The change will mean low-income earners will pay less when they lodge their income tax returns for 2024-25.<\/span><\/p>\n<p>&nbsp;<\/p>\n<table>\n<thead>\n<tr>\n<th><\/th>\n<th><b>2024-25<\/b><\/th>\n<th><b>2025-26<\/b><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Singles<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$26,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$27,222<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Families<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$43,846<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$45,907<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Single seniors &amp; pensioners<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$41,089<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$43,020<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Family seniors &amp; pensioners<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$57,198<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$59,886<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Family additional child or student<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$4,216<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$4,027<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><\/h3>\n<h3>Proposed personal income tax threshold<\/h3>\n<p>&nbsp;<\/p>\n<table>\n<thead>\n<tr>\n<th><b>Thresholds ($)<\/b><\/th>\n<th><b>Rates in 2024\u201325 and<\/b><b><br \/>\n<\/b><b>2025\u201326 (%)<\/b><\/th>\n<th><b>Rates in 2026\u201327 (%)<\/b><\/th>\n<th><b>Rates in 2027\u201328 (%)<\/b><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><b>0 \u2013 18,200<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Tax free<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Tax free<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Tax free<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>18,201 \u2013 45,000<\/b><\/td>\n<td><span style=\"font-weight: 400;\">16<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15<\/span><\/td>\n<td><span style=\"font-weight: 400;\">14<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>45,001 \u2013 135,000<\/b><\/td>\n<td><span style=\"font-weight: 400;\">30<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>135,001 \u2013 190,000<\/b><\/td>\n<td><span style=\"font-weight: 400;\">37<\/span><\/td>\n<td><span style=\"font-weight: 400;\">37<\/span><\/td>\n<td><span style=\"font-weight: 400;\">37<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>&gt;190,000<\/b><\/td>\n<td><span style=\"font-weight: 400;\">45<\/span><\/td>\n<td><span style=\"font-weight: 400;\">45<\/span><\/td>\n<td><span style=\"font-weight: 400;\">45<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><\/h3>\n<h3><b>Announced<\/b><b> $150 energy bill relief\u00a0<\/b><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>From<\/b><\/td>\n<td><span style=\"font-weight: 400;\">1 July 2025<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Households and small business will receive an additional automatic credit of $150 on their energy bills in quarterly instalments between 1 July 2025 and 31 December 2025.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The extension of energy bill rebates will cost $1.8 billion over two years.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Resources<\/b><b><br \/>\n<\/b><a href=\"https:\/\/www.pm.gov.au\/media\/more-energy-bill-relief-every-australian-household-and-small-business\"><span style=\"font-weight: 400;\">More energy bill relief for every Australian household and for small business<\/span><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><\/h3>\n<h3><b>Foreign resident CGT amendments delayed<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">From 1 July 2025, the way in which foreign residents interact with the tax system were scheduled to come into effect. These changes have now been delayed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The start date for proposed amendments to the capital gains tax (CGT) rules for foreign residents has been delayed until 1 October 2025 at the earliest, and potentially later depending on the passage of the reforms through Parliament.\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The changes would broaden the range of assets subject to CGT for foreign residents when they dispose of them, amend the rules which determine whether the sale of shares in a company or units in a trust are subject to CGT and require foreign residents to disclose transactions involving shares or trust interests with a value of at least $20 million to the ATO before they occur.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Resources<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">ATO <\/span><a href=\"https:\/\/www.ato.gov.au\/about-ato\/new-legislation\/in-detail\/businesses\/strengthening-the-foreign-resident-cgt-regime\"><span style=\"font-weight: 400;\">Strengthening the foreign resident capital gains tax regime<\/span><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><\/h3>\n<h3><b>Announced <\/b><b>2 year<\/b> <b>ban on foreign ownership of established homes<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">From 1 April 2025, the Government has banned foreign and temporary residents, and foreign-owned companies, from purchasing established dwellings to prevent \u2018land banking\u2019. The ban applies for 2 years but is subject to some limited exceptions.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Resources<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">ATO <\/span><a href=\"https:\/\/www.ato.gov.au\/about-ato\/new-legislation\/in-detail\/international\/banning-foreign-purchases-of-established-dwellings\"><span style=\"font-weight: 400;\">Banning foreign purchases of established dwellings<\/span><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><\/h3>\n<h3><b>MIT amendments delayed<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The extension of the cleaning building management investment trust (MIT) withholding tax concession was due to commence from 1 July 2025. This has now been delayed until the first 1 January, 1 April, 1 July or 1 October after the Act receives Royal Assent.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Government will also amend the tax laws to clarify arrangements for MITs to ensure that legitimate investors can continue to access concessional withholding rates. The changes will apply to find payments from 13 March 2025 and will complement the ATO\u2019s increased focus in this area to prevent misuse \u2013 see <\/span><a href=\"https:\/\/www.ato.gov.au\/law\/view\/document?docid=TPA\/TA20251\/NAT\/ATO\/00001\"><span style=\"font-weight: 400;\">Taxpayer Alert 2025\/1<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>\u2018Help to buy\u2019 program extended<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The Government\u2019s \u2018Help to Buy\u2019 program reduces the deposit required to buy a home by providing an equity contribution. Under the program, Housing Australia provides eligible participants with a Commonwealth equity contribution of up to 30% of the purchase price of an existing home and up to\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">40% of the purchase price of a new home. That is, they will give you the money and take a stake in your home.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Originally, to be eligible for the program, the income threshold for a single was $90,000 and, for joint participants, $120,000. The Budget increases this threshold to $100,000 and $160,000 respectively. Additional conditions apply.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The program is <\/span><a href=\"https:\/\/www.housingaustralia.gov.au\/home-guarantee-scheme\/help-buy-program\"><span style=\"font-weight: 400;\">not currently available<\/span><\/a><span style=\"font-weight: 400;\"> to applicants.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"color: #dc5629;\"><b>Business &amp; employers<\/b><\/span><\/h2>\n<h3><b>Non-compete clauses to be banned<\/b><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Date<\/b><\/td>\n<td><span style=\"font-weight: 400;\">From 2027<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">The Government has announced that it will ban non-compete clauses for low and middle-income employees (under the Fair Work Act high income threshold is currently $175,000). Non\u2011compete clauses are conditions in employment contracts that prevent or restrict an employee from moving to a competitor.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Back in April 2024, Treasury released an issues paper for consultation on <\/span><a href=\"https:\/\/treasury.gov.au\/consultation\/c2024-514668\"><span style=\"font-weight: 400;\">Worker non-compete clauses and other restraints<\/span><\/a><span style=\"font-weight: 400;\">. The review stated that, \u201cThe direct consequence of a non-compete clause is that it hinders competition among businesses: it disincentivises workers from leaving their current job, creating a barrier to the entry of new businesses and the expansion of existing businesses.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Government is also make changes to competition law to prevent businesses from:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fixing wages by making anti\u2011competitive arrangements that cap workers\u2019 pay and conditions, without the knowledge and agreement of affected workers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Using \u2018no\u2011poach\u2019 agreements to block staff from being hired by competitors.\u00a0<\/span><\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td><b>Resources<\/b><b><br \/>\n<\/b><a href=\"https:\/\/ministers.treasury.gov.au\/ministers\/jim-chalmers-2022\/media-releases\/cracking-down-non-compete-clauses-boost-wages-and\"><span style=\"font-weight: 400;\">Cracking down on non-compete clauses to boost wages and productivity<\/span><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><\/h3>\n<h3><b>Announced <\/b><b>Beer tax paused and benefits for wine and alcohol producers<\/b><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Date<\/b><\/td>\n<td><span style=\"font-weight: 400;\">August 2025 (beer excise)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">1 July 2026 (other measures)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Indexation on the draught beer excise and excise equivalent customs duty rates will be paused for two years from August 2025. This just means that the price of beer won\u2019t go up because of tax.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Support is also provided under the Excise remission scheme for manufacturers of alcoholic beverages increasing caps for all eligible brewers, distillers and wine producers to $400,000 per financial year, from 1 July 2026 (up from $350,000).<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Resources<\/b><b><br \/>\n<\/b><a href=\"https:\/\/www.pm.gov.au\/media\/albanese-labor-government-freeze-draught-beer-excise\"><span style=\"font-weight: 400;\">Albanese Labor Government to freeze draught beer excise<\/span><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><\/h3>\n<h3><b>Trade tariffs extended on Russia and Belarus<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The Government has extended additional 35% trade tariffs imposed on goods that are the produce or manufacture of Russia or Belarus. The measure is symbolic support for Ukraine as it delivers a negligible increase in revenue over five years.<\/span><\/p>\n<h2><\/h2>\n<h2><span style=\"color: #dc5629;\"><b>Government &amp; regulators<\/b><\/span><\/h2>\n<h3><b>Almost $1bn to the ATO for tax compliance<\/b><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Date<\/b><\/td>\n<td><span style=\"font-weight: 400;\">From 1 July 2025<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">The Government has set aside $999m over 4 years for the ATO to expand its compliance programs:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax Avoidance Taskforce<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shadow Economy Compliance Program<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Personal Income Tax Compliance Program<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax Integrity Program (medium and large businesses and wealthy groups)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The compliance programs are expected to deliver a threefold return of $3.2bn.<\/span><\/p>\n<h3><b>$700m external contractor cost cutting<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The Government intends to further pair back its use of consultants, contractors and labour hire. The budget estimates that the Government will save $718m in 2028-29 by continuing cuts to external labour.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"color: #dc5629;\"><b>The economy<\/b><\/span><\/h2>\n<h4><b>Growth<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Australia\u2019s economy is expected to grow, albeit slowly, at 2.25% in 2025-26 and 2.5% in 2026-27.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The direct impact of Ex-Tropical Cyclone Alfred on economic activity is estimated to be up to 0.25% of GDP.<\/span><\/p>\n<h4><b>We\u2019re back in a deficit<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The underlying cash balance will be a deficit at -$42.1bn in 2025-26, before improving but remaining in the red for several years.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Debt is also higher, rising from 18.4% of GDP in 2023-24 to an estimated 21.5% in 2025-26, rising to 23.1% by 2028-29.<\/span><\/p>\n<h4><b>Employment<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The unemployment rate has stayed low, the participation rate remains elevated, and employment has grown by more than one million people since May 2022 with around 80% of jobs created in the private sector since the June quarter 2022.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unemployment is expected to peak at 4.25%.<\/span><\/p>\n<h4><b>Wages<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Annual real wages have grown for five consecutive quarters and are forecast to grow by 0.5% in 2024-25.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Wage Price Index (WPI) grew by 3.2% through the year to the December quarter 2024 and is expected to grow by 3% through the year to the June quarter of 2025 and 3.25% to June 2026.<\/span><\/p>\n<h4><b>Inflation<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Inflation is expected to be 2.5% through the year to the June quarter 2025.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The moderation of inflation was helped by cost of living relief and a decline in petrol prices towards the end of 2024. Electricity rebates and indexation of rent assistance (Commonwealth and State) reduced\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">headline inflation by 0.75% through the year to the December quarter of 2024.<\/span><\/p>\n<h4><b>Global tensions<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Economically, trade tensions have magnified global uncertainty. Global growth is already subdued. The indirect effect of tariffs is estimated to be nearly four times as large as the direct effect on Australia, reflecting the relative importance of affected trade flows between Australia, China, and the United States. Retaliatory tariffs, if they occur, will only amplify losses in real GDP.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>You can <strong><a href=\"http:\/\/quantiphy.com.au\/oldbackup\/wp-content\/uploads\/2025\/03\/Budget-2025-26-Quantiphy-Our-Guide-to-the-Federal-Budget.docx-1.pdf\">download the guide here<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Government\u2019s big moment in the 2025-26 Federal Budget was the personal income tax cuts. Income tax cuts are a dazzling headline but in reality they deliver a tax saving of up to $268 in the 2026-27 year, with a tax saving of up to $536 from the 2027-28 year. At the same time, the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":16575,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41,6,43],"tags":[],"class_list":["post-16574","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting","category-news","category-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Federal Budget 2025-26: Show Me The Money\u00a0 - Quantiphy<\/title>\n<meta name=\"description\" content=\"The Government\u2019s big moment in the 2025-26 Federal Budget was the personal income tax cuts. 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