2020 Financial Services2020 Financial Services
  • Home
  • Services
    • Financial Services
      • Risk Insurance
      • Superannuation
      • Salary Packaging
      • Self-Managed Super Fund Advice and Administration
      • Investments
      • Financial Planning
    •  Additional Services
      • Business Advice
      • Tax Planning
      • Finance and Debt Management
    • More Services
      • Aged Care
      • Estate Planning
      • Centrelink
      • Share portfolio management
  • Team
  • Resources
    • AI Wealth Coach
    • Financial Calculators
    • Useful Guides
    • Our Diary Notes
    • Our Client Manuals
    • Our Client Newsletter
    • Our Videos
    • Insurance Quote
    • The Cost of Care
    • Pre-Assessment Request Form
    • Fact Finder & FSG
    • Fact Sheets
  • Contact Us
    • Book Appointment

Contact Us

0416 082 117
glennb@2020financialservices.com.au
20 Willow Tree Drive Reedy Creek QLD 4227

"A clearer vision for your financial future"
Close

AI Wealth Coach

💡 We’ve recently launched AI Wealth Coach. Try it here!

How the 2025 Federal Budget Could Affect You

How the 2025 Federal Budget Could Affect You

The 2025 Australian Federal Budget, announced by Treasurer Jim Chalmers on 25 March, outlines the government’s plans for the next financial year. While budget documents can be overwhelming, here’s a simplified look at the key changes that might impact your finances.

The 2025 Australian Federal Budget, announced by Treasurer Jim Chalmers on 25 March, outlines the government’s plans for the next financial year. While budget documents can be overwhelming, here’s a simplified look at the key changes that might impact your finances.

Income Tax Changes

The government has introduced new tax cuts to help ease the cost of living. From 1 July 2026, the tax rate for income between $18,201 and $45,000 will drop from 16% to 15%, and then to 14% in July 2027. For someone earning in this bracket, this means an extra $268 in your pocket by 2026 and up to $536 by 2027.

The table below summarises the proposed personal income tax rates and thresholds:

Taxable Income ($) 2024–25 & 2025–26 (%) 2026–27 (%) 2027–28 (%)
0 – 18,200 0 0 0
18,201 – 45,000 16 15 14
45,001 – 135,000 30 30 30
135,001 – 190,000 37 37 37
190,001+ 45 45 45

 

While these cuts may seem small, they’re part of a broader effort to reduce taxes over time. Additionally, the Medicare levy low-income thresholds are going up by 4.7%, which could benefit lower-income earners.

However, Economist Peter Swan dismissed the tax cuts as a “complete joke,” arguing they won’t offset declining living standards.

Healthcare, Education, and Childcare

Healthcare is getting a boost with increased funding for bulk billing and cheaper medicines under the Pharmaceutical Benefits Scheme (PBS). Starting January 2026, PBS medicine costs will drop to $25 per prescription.

For students, there’s good news: a 20% reduction in outstanding student debts and an increase in the repayment threshold to $67,000 from July 2025. This means you’ll start repaying your loans later and owe less overall.

Childcare is becoming more accessible with the introduction of a “3 Day Guarantee” from January 2026. Most families will qualify for at least three subsidised days of childcare each week—no activity test required.

Energy Relief

The government has extended its energy bill relief program with an additional $1.8 billion commitment. This extension ensures that every household and around one million small businesses will receive rebates to help manage rising energy costs. Specifically, each eligible household and small business will get $150 in rebates, distributed as two payments of $75 each, over the second half of 2025.

Superannuation

The superannuation guarantee rate will increase to 12% from July 2025, helping Australians save more for retirement. Another change is “Payday Super,” which will require employers to pay super at the same time as wages starting July 2026. Super contributions will also apply to Paid Parental Leave for babies born after July 2025.

Also, the Budget reaffirmed its plan to implement a tax on superannuation balances over $3 million.

Housing Affordability

The “Help to Buy” scheme is expanding, allowing eligible buyers to access government equity contributions of up to 40%. A two-year ban on foreign investors buying established homes begins in April 2025, aimed at freeing up housing stock for locals.

Conclusion

The budget introduces measures like tax cuts, cheaper healthcare, student debt relief, childcare subsidies and energy relief designed to ease financial pressure on households. Initiatives around housing and superannuation aim for long-term benefits.

How much these changes affect you depends on your personal situation—whether it’s your income level, family needs, or housing plans. Please feel free to contact us if you would like to have a chat.

 

 
March 2025 How Trump’s Tariffs Affect Australian Investors and What to Do Next
From Dreaming to Doing – Preparing for Your Meeting
Reflection, Retirement

From Dreaming to Doing – Preparing for Your Meeting

Anticipate Life Changes – Building Flexible Plans
Reflection, Retirement

Anticipate Life Changes – Building Flexible Plans

Breaking It Down – How to Frame Your Goals Clearly
Reflection, Retirement

Breaking It Down – How to Frame Your Goals Clearly

Contact Us

Sign up to newsletter

Sign up to newsletter
Visit my profile on Adviser Ratings
© 2020 Financial Services 2025
Privacy Policy | ABN 40 365 010 780 | Financial Services Guide | Disclaimer

2020 Financial Services Pty Ltd is a corporate authorised representative (001289351) of Financial Force Pty Ltd (AFSL 238337).
General Advice Warning

All strategies and information provided on this website are general advice only which does not take into consideration any of your personal circumstances. Please arrange an appointment to seek personal financial, legal, credit and/or taxation advice prior to acting on this information.