What the Latest Federal Budget Means for You!

The 2025 Federal Budget has just been announced, and it brings a mix of cost-of-living relief, tax cuts, and support for both individuals and small businesses.

We’ve broken down the key points in plain English so you can quickly understand what’s changing and how it might affect you.

Personal Income Tax Cuts Coming in 2026 and 2027

Good news if you pay tax — the government is planning to lower personal income tax rates starting in July 2026, with a further drop in July 2027.

Anyone earning above $18,200 will benefit from the reduction in the marginal tax rate currently 16% applied to earnings between $18,200 and $45,000, reducing to:

15% in 2026, and
14% in 2027

This means a tax cut of:

Up to $268 in 2026, and
Up to $536 in 2027

When combined with existing Stage 3 tax cuts, the average Australian could save about $2,548 a year by 2027–2028—that’s roughly $50 a week back in your pocket. For someone earning around $79,000, the total tax cut will be $2,190 by 2027–2028.

These cuts are designed to ease the cost of living and help part-time and lower-income workers. The government also expects these changes to encourage more people to increase their working hours.

2. Student Debt Relief for More Than 3 Million Australians

If you’ve got a HELP or student loan, here’s what you need to know:

The government plans to reduce HELP debts by 20% before indexation is applied on 1 June 2025. This could wipe around $16 billion in debt for over 3 million people.
From 1 July 2025, the new system is proposed, subject to parliamentary approval, that aims to:

-Raise the repayment income threshold, so you can earn more before you start repaying.

-Switches to a fairer repayment structure that increases gradually with income.

Also, a change already in place (backdated to June 2023) has capped indexation to whichever is lower — the Consumer Price Index (CPI) or Wage Price Index (WPI) — and has already reduced debts by $3 billion.

you’ve got a HELP or student loan, here’s what you need to know:

3. Energy Bill Rebate Extended — Small Businesses Included

The energy rebate is sticking around until the end of 2025 — and now includes small businesses too.

Here’s what you’ll get:

Another $150 rebate in total, split into two $75 quarterly payments, starting 1 July 2025.
This applies automatically to eligible households and about one million small businesses — no need to apply.

Treasury expects this will:

Cut the average power bill by about 7.5%, and
Help reduce overall inflation slightly in 2025.

4. Instant Asset Write-Off Extended — Still Being Finalised

Small businesses may soon be able to immediately write off new asset purchases under $20,000 again — but the rules haven’t officially passed yet.

If approved, this will apply to:

Assets bought and ready to use between 1 July 2024 and 30 June 2025.
Multiple assets under $20,000 each — there’s no limit on how many.

Larger purchases (over $20,000) can still be claimed gradually using the simplified depreciation rules. If your depreciation pool ends up under $20,000 at the end of the year, you can write the whole amount off too.

This rule is for businesses with a turnover of less than $10 million.

5. ATO Getting More Power to Crack Down on Tax Dodging

The ATO is getting nearly $1 billion over four years to boost its tax compliance programs — which means more focus on catching and preventing tax mistakes or fraud.

The funding will be used to:

Expand audits on big companies and multinationals.
Crack down on the “cash economy” — such as under-the-table payments or not reporting income.
Target individuals who might be incorrectly claiming deductions or not reporting income.

if you’d like to chat about how these changes apply to your situation, feel free to give us a call on 03 5571 0111 — or head to the Budget 2025-26 website for more information.

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Unlock The Benefits Of Downsizer Super

By Cogger Gurry • October 21, 2025

If you’re nearing retirement and looking for ways to boost your superannuation savings, downsizer super contributions might be the perfect solution for you. These allow eligible Australians aged 55 and over to contribute proceeds from selling their home into their superannuation fund. A downsizer contribution allows an eligible individual to contribute an amount equal to all or part of the sale proceeds (up to $300,000 each) from the sale of their home into their superannuation fund. The contribution must not exceed the sale proceeds of the home. The great advantage is that downsizer contributions aren’t restricted by any other contribution caps or your total superannuation balance; there are no work tests; and there’s no upper age limit. It’s one of the rare ways you can contribute large amounts to your super even after the age of 75. Eligibility To make a downsizer contribution, you must: • be 55 years or older at the time of contribution; • have owned the home for 10 years or more (the owner can be you or your spouse); • sell your home that is in Australia and is not a caravan, houseboat or mobile home; • ensure the sale is exempt or partially exempt from CGT for you under the main residence exemption; • make the contribution within 90 days of receiving the sale proceeds (usually settlement date); • not have made a downsizer contribution previously from another home; and • provide your super fund with the Downsizer contribution into super form either before or at the time of making the contribution. Failure to submit the Downsizer contribution into super form on time may result in your fund rejecting the contribution or treating it as a standard non-concessional contribution, which could have adverse tax implications. The 90-day deadline from the date of settlement is also strict. If you need more time (Eg due to delays in purchasing a new home), you must apply to the ATO for an extension. Extensions are granted only in limited circumstances, such as settlement delays due to council approvals. If you are considering selling your home and wish to further explore a potential downsizer contribution, please do not hesitate to get in contact with our office (03)55710111

Big Changes Coming To AML/CTF Laws- What Our Clients Need To Know

By Cogger Gurry • October 21, 2025

The government has announced major reforms to Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws . This is the biggest update in nearly 20 years. These reforms aim to modernise how Australia combats financial crime and bring us into line with international standards. While not every business will be affected, some sectors will face new or expanded reporting and compliance obligations. Sectors likely to be impacted include: Accountants and bookkeepers Real estate agents Lawyers and conveyancers Dealers in precious metals and stones The activities you undertake, such as managing client funds, setting up companies or trusts, or handling large transactions, will determine if these new rules apply to you. AUSTRAC’s national awareness campaign will help businesses understand what’s changing and how to prepare, with guidance and tools rolling out over the next year. 👉 We’re here to help. If you’re unsure whether these reforms could affect your business, contact our team to discuss what it means for you. You can read more here - https://www.austrac.gov.au/national-reforms-awareness-campaign-launch

Vouchers And GST In Your Business

By Cogger Gurry • October 21, 2025

Vouchers and GST in your business If your business sells or buys vouchers, it’s essential to understand how to account for and report GST correctly. A voucher is a document or an electronic record that represents a right to receive goods or services. This includes physical gift cards, digital vouchers and even prepaid phone cards. When your business sells a voucher, you’re essentially providing the recipient with a promise to supply goods or services in the future, and it’s at this future point that the GST implications come into play. The ATO recognises two distinct types of vouchers. Face value vouchers Face value vouchers can be redeemed for a reasonable choice of goods and services – for example, a $50 supermarket gift card that works across all store locations. The voucher sale isn’t considered a GST taxable supply, so you don’t charge GST at the point when you sell the voucher. Instead, you account for GST when the voucher’s redeemed and the goods or services are supplied. For instance, if you sell that $50 gift card, you don’t charge GST on the gift card sale, but when the gift card’s redeemed to purchase goods worth $50, you charge GST on the supply of those goods. Non-face value vouchers Non-face value vouchers are restricted to specific goods or services – like a voucher specifically for a spa treatment, purchased for $100. With these, you account for GST (eg on the $100 price) at the time of sale, but only if the voucher is redeemable for taxable supplies. If the voucher is only redeemable for GST-free or input-taxed supplies, there’s no GST to account for. Note on expired vouchers Here’s something business owners often overlook: if you’ve sold face value vouchers that expire or remain unredeemed, and you write back the unused amount to your current income for accounting purposes, you need to make an “increasing adjustment” on your Business Activity Statement (BAS). This adjustment is 1/11th of the unredeemed balance. Keep accurate records To account for GST on vouchers you sell, you need to keep accurate records including dates of sale, redemption and/or expiration, and the amounts of GST payable. Importantly, specific rules and exceptions apply to certain types of vouchers. For example, if you sell vouchers that can be redeemed for a combination of goods and services, you need to apportion the GST accordingly. You may also need to issue a tax invoice to the customer when a voucher’s redeemed and \keep a copy of this invoice for your records. And finally, of course, you need to report GST on vouchers in your BAS in accordance with ATO guidelines.