Budget 2025-2026: Government and regulators
March 26, 2025
Almost $1bn to the ATO for tax compliance
From 1 July 2025
The Government has set aside $999m over 4 years for the ATO to expand its compliance programs:
• Tax Avoidance Taskforce
• Shadow Economy Compliance Program
• Personal Income Tax Compliance Program
• Tax Integrity Program (medium and large businesses and wealthy groups)
The compliance programs are expected to deliver a threefold return of $3.2bn.
$700m external contractor cost cutting
The Government intends to further pair back its use of consultants, contractors and labour hire. The budget estimates that the Government will save $718m in 2028-29 by continuing cuts to external labour.
Please contact us if you have any questions - email us or phone our team on 02 9899 3044.
From the 2026–27 financial year the GIC will no longer be deductible. For a company with a 25% tax rate, the after-tax cost of carrying an ATO debt jumps to 11.17%.
If you own a holiday home that you also rent out, a shift that takes full effect from 1 July 2026 could materially change what you can claim at tax time.
New rules require certain retailers to accept cash payments, ensuring Australians can buy essential goods like groceries and fuel. Is your business affected?
