2025 Budget Reforms: What Individuals and SMEs Need to Know
Australia’s political landscape has shifted again. With Labor securing a majority in the House of Representatives, the government is setting its agenda into motion. Their promises affect more than politics. They touch everyday lives, business operations, and personal goals. Whether you run a small business or are saving for your first home, the new term brings key updates you’ll want to understand.
Here’s what’s changing and why it matters.
What’s New for Individuals
- From July 2026, personal income tax relief begins to roll out.
Taxpayers earning between $18,201 and $45,000 will see their tax rate drop to 15 percent. One year later, it fell again to 14 percent. This means more money stays in your pocket. For many, it could amount to over $500 in yearly savings by 2027. - If you earn a wage or salary, a new shortcut deduction is on the table.
Eligible workers will be able to claim a simple $1,000 work-related deduction without needing receipts or records. Those who typically claim more can still choose the detailed method. The goal is to give everyday workers a faster, easier way to lodge their return. - Energy costs are also receiving attention.
From July 2025, households will receive another $150 rebate on electricity bills. The amount will be applied automatically over the course of the year. This measure aims to reduce the burden of rising utility costs without requiring any action from you. - Technology at home is becoming more accessible.
The government will offer a 30 percent discount on installed home battery systems starting July 2025. For most households, this could mean savings of around $4,000 on battery installation. That’s a significant incentive to move toward solar and energy storage solutions. - First home buyers will benefit from expanded support.
Labor’s revised scheme allows eligible buyers to purchase a property with a 5 percent deposit, without needing to pay for lenders mortgage insurance. There are no income limits and no cap on the number of available spots. If you’ve never owned property or haven’t owned one in over ten years, you may qualify.
- From July 2026, personal income tax relief begins to roll out.
What’s Ahead for Business Owners
- The instant asset write-off is sticking around longer.
Small businesses with turnover under $10 million can continue claiming immediate deductions for purchases under $20,000. This applies through to 30 June 2026. The timing of purchases still matters. Assets must be installed and ready for use to be eligible. If you’re planning to upgrade tools, tech, or equipment, this policy opens the door for smarter spending. - A national strategy for small business is now in consultation.
The proposed strategy looks to reduce friction between government systems and streamline compliance. The aim is to make interactions between businesses and different levels of government more straightforward. If adopted, this could simplify paperwork and reduce delays across applications, reporting, and registrations. - Support for the green industry is expanding.
The Green Aluminium Production Credit will offer emissions-linked payments to smelters transitioning to renewable electricity. Aluminium production represents about ten percent of Australia’s electricity use. The credit aims to shift that demand toward cleaner sources. While this initiative targets large industries, it signals stronger national momentum toward renewables, which may shape opportunities across related sectors.
- The instant asset write-off is sticking around longer.
Aero Accounting Group is Here to Help You Move Forward with Confidence
Understanding these updates is one part of the equation. Taking the right action is what makes the difference. At Aero Accounting Group, we help individuals and business owners turn policy shifts into practical gains.
Our team is already working with clients to time purchases, assess eligibility, and plan smarter strategies for the year ahead. You don’t need to sift through legislation. We’ll help you get clear answers and a smart plan.
Explore the full article, start a conversation, or book a consultation today.
Let’s make the most of what’s ahead.
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