Reading Room - State & Federal Legislation/Budgets
As the Labor party settle back into their seats having secured a majority in the House of Representatives, we look at the campaign promises and the unfinished business from last term.
In the 2025-26 Federal Budget the Government announced a ban on non-compete clauses and “no poach” agreements.
From 1 July 2026, personal income tax rates will change. On the last sitting day of Parliament, the personal income tax rate reduction announced in the Federal Budget was confirmed.
Australia’s economy is expected to grow, albeit slowly, at 2.25% in 2025-26 and 2.5% in 2026-27. Plus, we’re back in a deficit and unemployment is expected to peak at 4.25%.
The Government has set aside $999m over 4 years for the ATO to expand its compliance programs. It also intends to further pair back its use of consultants, contractors and labour hire.
The Government will ban non-compete clauses for low and middle-income employees. Indexation on draught beer excise will be paused for two years.
The Government will provide a “modest” tax cut to all taxpayers plus the Medicare levy thresholds are increased for low-income earners.
The Government’s big moment in the 2025-26 Federal Budget was the personal income tax cuts. Income tax cuts are a dazzling headline but in reality they deliver a tax saving of up to $268 in the 2026-27 year
The last few years have been a rollercoaster ride of instability. 2025 holds hope, but not a guarantee, of greater stability and certainty.
