Extension of Energy Bill Relief Fund
What? Eligible households and small businesses will continue to receive a $75 per quarter rebate.
Who? Individuals, Families, Small businesses
When? Extended to 31 December 2025
Personal Income Tax Cuts
What? New tax cuts will apply in addition to the first round of tax cuts started from 1 July 2024. For the first tax bracket over $18,200:
- From 1 July 2026, 16% will be reduced to 15%
- From 1 July 2027, 15% will be reduced to 14%
The Medicare levy low-income threshold will also be increased for singles, families, seniors & pensioners from 1 July 2024.
Who? Individuals
Proposed resident tax rates from 1 July 2026
| Taxable income | Tax on this income |
| $0 – $18,200 | $NIL |
| $18,201 – $45,000 | 15c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,020 plus 37c for each $1 over $135,000 |
| $190,001+ | $51,370 plus 45c for each $1 over $190,000 |
Proposed resident tax rates from 1 July 2027
| Taxable income | Tax on this income |
| $0 – $18,200 | $NIL |
| $18,201 – $45,000 | 14c for each $1 over $18,200 |
| $45,001 – $135,000 | $3,752 plus 30c for each $1 over $45,000 |
| $135,000 – $190,000 | $30,752 plus 37c for each $1 over $135,000 |
| $190,001+ | $51,102 plus 45c for each $1 over $190,000 |
Cutting Student Debt
What? A previously announced measure, the below reforms will reduce student loan debt by $19 billion.
One-off reduction of all outstanding HELP and student debts by 20% before indexation is applied on 1 June 2025, removing $16 billion of debt.
Retrospective adjusted indexation for 2023 and 2024, reducing debt by a further $3 billion.
From 1 July 2025, the income threshold for compulsory repayments will rise from $54,435 to $67,000, easing the burden on lower-income earners.
New repayment system will be based only on income above the $67,000 threshold, as follows:
| Income Thresholds | Marginal Rate of Repayment |
| Income below $67,000 | $NIL |
| Income from $67,000 to $124,999 | 15c for each $1 over $67,000 |
| Income above $125,000 | $8,700 plus 17c for each $1 over $125,000 |
Who? Individuals, Students
Child Care Subsidy
What? Parents will be guaranteed 3 days of subsidised childcare a week regardless of how much they work or study.
Who? Individuals, Families
When? From January 2026
Should you have any questions please do not hesitate to give the team a call!