Clear Tax Accountants Breaks Down What the 2025 Federal Budget Means for Everyday Australians

MELBOURNE, Australia - April 23, 2025 - PRLog -- The Federal Budget released on 25 March 2025 has brought in a mix of tax cuts, targeted relief, and compliance reforms that will affect millions of Australians and businesses across the country.

Tax Relief for Individuals

From 1 July 2026, the bottom income tax rate will drop from 16% to 15%, and again to 14% the following year. While the weekly savings might only be a few dollars, it's a step toward easing the cost of living and keeping taxes fair for lower and middle-income earners.

Combined with the already planned Stage 3 tax cuts coming this July, Aussies earning the national average wage of $79,000 will save up to $2,190 by the 2027–28 financial year.

More Help with the Cost of Living

To help with rising energy bills, a $150 rebate will be automatically applied to the electricity bills of all individual taxpayers and small businesses. This is on top of two additional $75 rebates for households and eligible businesses through to the end of 2025.

Support for Small Business

The popular $20,000 instant asset write-off has been extended another year, until 30 June 2026. This allows small businesses to continue deducting asset purchases without waiting for depreciation rules to catch up.

But beware, this is likely the final extension, and it's set to return to $1,000 after that, depending on parliamentary approval.

Student Debt Cutbacks

A one-off 20% cut to HELP and other student loans will apply before indexation hits in June 2025. More than three million Australians will benefit.

Plus, a new income-based repayment system will launch from July 2025, designed to make repayments more manageable for lower-income earners.

ATO Compliance and What It Means

The government is serious about tax compliance. Nearly $1 billion has been allocated to the ATO over the next four years. Areas of focus include the shadow economy, unpaid super, and high-net-worth taxpayers.

And don't forget super

As expected, the Superannuation Guarantee will rise from 11.5% to 12% on 1 July 2025, completing the government's scheduled increases.

Words from the Director

Ash Jindal, Director and Co-Founder of Clear Tax Accountants, says,

"We welcome the relief measures for individuals and small businesses, but there's a clear message here: compliance is going to be a major focus. If you're unsure how this affects you, now is the time to get the right advice."

If you're wondering how the budget changes will affect your next tax return or your business strategy, now's the time to speak to an expert. Visit https://cleartax.com.au to book a consultation.