The government released its 2025-26 budget on Tuesday, 14 May 2025 with its major focus being cost-of-living relief. It announced a modest tax cut, further energy bill subsidies, more bulk-billing, reduced PBS co-payments and cuts to student debt.

On the super front, there was little in this year’s budget, the only announcement of note being increased funding for compliance, while there was also additional funding allocated to the implementation of the already announced ‘payday super’ initiative.

It’s important to note that the new measures in the Federal Budget are announcements only and may or may not be implemented.

KEY MEASURES

• A modest tax cut targeted at low-income earners, with the bottom marginal tax rate to be cut from 16 to 14 cents in the dollar in two steps from 1 July 2026.

• Extension of the electricity rebate, giving households another $150 this year.

• Reduced PBS co-payments.

• An expansion of the housing "Help to Buy" shared equity scheme.

• Confirmation of the promise to cut a further 20% from all student loan debts by 1 June 2025.

• A major $8.5 billion funding boost for Medicare to lift bulk-billing rates.

SUPER ANNOUNCEMENTS

Funding for the ATO to chase unpaid super

From 1 July 2026, there will be an extra $50 million over three years for an ATO program aimed at companies’ compliance with super and tax law. The program will focus on medium and large businesses with a goal of having $31 million in unpaid super passed to employees over five years from 2024-25 financial year.

Payday Super

The “Payday Super” initiative was announced in the 2023-24 budget, with this year’s budget allocating additional funding of $400 million over four years to support its introduction (set for 1 July 2026). Under Payday Super employers will be required to pay their employees’ super at the same time they pay their salary and wages.

MORE INFORMATION

For a comprehensive run down of the Budget’s initiative, visit the Budget 2025-26 website.