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.
On 3 September 2026, Treasury released exposure draft legislation for the proposed 30% minimum tax on discretionary trusts, announced in the 2026-27 Federal Budget.
The 50% capital gains tax discount for individuals, trusts and partnerships is abolished, replaced by CPI cost base indexation and a 30% minimum tax on real gains.
A Commonwealth penalty unit increased from $330 to $364 on 1 July 2026, having a direct and immediate effect on many Australian Taxation Office penalties.
