What it means for business, family and finances.
The Federal Budget was handed down this week on the 25 March 2025, and there’s a lot in it for Aussie businesses, families and individuals. We’ve pulled out the key points to help you make sense of what’s changing and how it might affect your finances.
Key Takeaways:
- $75 energy bill rebates for households and small businesses
- Up to $25,000 in energy efficiency grants for SMEs
- Tax cuts for low and middle-income earners starting 2026
- 20% reduction in student loan debt for 3 million Australians
- Cheaper PBS medications and expanded bulk billing
- More subsidised childcare and wage increases for early educators
- Increased rent assistance and expanded Help to Buy scheme
- Support for the hospitality sector, including tax relief for beer producers
- Non-compete clauses banned for low- and mid-income employees
- Aged care workers to receive pay rises
For Small & Medium Businesses
1. Energy Bill Relief (Yes, again!)
Great news—more help is on the way for small businesses struggling with energy costs. You’ll see two $75 rebates automatically taken off your electricity bills between now and the end of the year.
2. Grants for Going Green
Thinking about upgrading your lighting or heating systems? The government’s Energy Efficiency Grants are back, offering up to $25,000 to help businesses make energy-smart upgrades.
3. Relief for the Hospitality Sector
The budget pauses indexation of the excise duty on draught beer and boost support for alcohol producers.
4. Say Goodbye to Non-Compete Clauses
The budget includes a measure to prohibit non-compete clauses for workers earning up to $175,000 annually, effective from 2027. This change is expected to enhance job mobility and potentially lead to wage increases for affected employees.
5. The $20,000 instant asset write off ending
For small to medium business the $20,000 instant asset write-off has not been extended beyond 30 June 2025. Without new legislation advising otherwise, the asset threshold will drop to $1,000 from 1 July 2025.
For Individuals and Families
1. More Money in Your Pocket
From July 2026, the tax rate on income between $18,201 and $45,000 drops from 16% to 15%, and then down to 14% in 2027. It’s not a windfall, but for the average worker earning $79K, it adds up to an extra $500+ a year.
2. Household Energy Rebates
Just like businesses, households will also get two $75 rebates off their power bills this year.
3. Bulk-Billing & Cheaper Prescriptions
A big investment in healthcare means 90% of GP visits will be bulk-billed by 2030, and prescription co-payments will drop to $25 per script from 2026.
4. Student Loan Relief
The government is cutting HECS/HELP loan balances by 20% for three million Aussies, and raising the income threshold for repayments from $54,435 to $67,000.
5. Childcare Support
At least three days a week of subsidised childcare is on the cards, and early childhood educators are getting a pay rise.
6. More Help for Renters and First-Home Buyers
Rent assistance is getting a 45% boost, and the Help to Buy scheme will support 40,000 people into their first homes over the next four years.
7. Aged Care Workers Get a Pay Rise
A $2.6 billion commitment will lift wages for aged care nurses and carers, with more funding promised down the line.
For more information on any of these points or to read the budget for yourself, visit: https://budget.gov.au/
