Federal Budget 2025–26: What It Means for You and Your Business

The Federal Budget for 2025–26 has been handed down, and it carries important implications for everyday Australians, sole traders, and business owners alike. With changes targeting personal income tax, Medicare levies, and foreign property ownership, it’s crucial to understand how these reforms could impact your financial decisions.

At Streamlined Accountants, we’ve unpacked the key highlights so you can take informed steps towards financial stability and business growth in the new financial year.

🔍 Key Takeaways from Budget 2025–26

1. Personal Income Tax Overhaul: Stage 3 Reforms Begin

The Government has confirmed the implementation of Stage 3 tax reforms from 1 July 2025, marking a significant restructuring of Australia’s income tax brackets.

Here’s what’s changing:

• The 37% tax bracket will be abolished.

  
  

• A flat 30% rate will apply to income between $45,001 and $200,000.

  
  

• Income over $200,000 remains taxed at the top marginal rate of 45%.

Why it matters:

This reform is designed to offer broader relief to middle-income earners and business professionals, reducing bracket creep and putting more money back in your pocket. For sole traders and small businesses, this could mean more capacity to reinvest in your operations, grow your team, or simply boost profitability.

2. Higher Medicare Levy Thresholds

In response to inflation and rising living costs, the Government has raised the Medicare levy thresholds again in the 2025–26 budget. This offers financial breathing room for households and individuals.

The new thresholds provide:

• Increased exemption limits across singles, couples, and family brackets.

  
  

• Reduced or no Medicare levy for those earning below the adjusted levels.

What it means for you:

This update can significantly ease tax burdens, especially for self-employed individuals or those with inconsistent income flows. With less taken out for levies, you can direct more funds toward savings, investment, or business expenses.

3. Tighter Controls on Foreign Residential Property Ownership

To address concerns about housing affordability, the budget introduces stronger restrictions on foreign ownership of residential properties in Australia.

Key updates include:

• Increased application fees for non-resident buyers.

  
  

• Higher vacancy charges for underutilised or empty properties.

  
  

• Enhanced compliance monitoring to enforce regulations.

What this means:

If your business or personal investments include foreign property interests or structures, now is the time to review your arrangements. Non-compliance under the updated regulations could lead to steep fines or legal consequences.

💼 Why Business Owners Should Pay Attention

This Budget presents not just new rules, but new opportunities for strategic planning. Business owners should use this as a turning point to enhance resilience, refine structures, and prepare for long-term success.

Here’s what to focus on:

• Evaluate your business structure for tax effectiveness.

  
  

• Adjust your cash flow planning based on the new tax brackets and levy thresholds.

  
  

• Use any tax savings to reinvest in key areas like staffing, technology, or expansion.

  
  

• Review foreign investment or ownership arrangements to ensure full compliance.

💡 How Streamlined Accountants Can Help You Respond Strategically

Navigating tax reform and regulatory updates can be complex — but it doesn’t have to be. At Streamlined Accountants, we bring clarity to your finances with expert guidance tailored to your business and personal goals.

We provide:

• Tailored tax planning and cash flow modelling

  
  

• Medicare levy reviews and tax-saving strategies

  
  

• Business structure optimisation for maximum efficiency

  
  

• Advise on foreign investment compliance and risk management

  
  

• Ongoing strategic advisory to support sustainable financial growth

📞 Let’s Prepare for What’s Next

Whether you're growing a business, managing investments, or simply looking for better financial strategies — we're here to guide you through the changes and help you maximise your opportunities.

Call us today on 0451-040-656 or email info@streamlinedaccountants.com.au to book a consultation with one of our expert advisors.

Let’s make sure you’re not just keeping up — but getting ahead.