The 2025/26 Federal Budget introduces several tax changes and financial measures impacting individuals, nonprofits, and businesses. At Hopscotch Accounting, we specialise in guiding nonprofits and businesses through these changes to ensure compliance and financial efficiency.
Here’s what you need to know and how we can help.
Personal Income Tax Changes
Starting from 1 July 2026, taxpayers will benefit from reduced tax rates:
- The 16% tax rate will decrease to 15% in 2027.
- The 15% tax rate will further drop to 14% in 2028.
These reductions offer moderate savings for individuals earning between $18,201 and $45,000, with cuts of up to $268 in 2027 and $536 in 2028.
Medicare Levy Low-Income Threshold Increase
To ease the cost of living, the government is increasing the Medicare levy low-income thresholds, ensuring that low-income earners remain exempt or pay a reduced levy rate.
For single individuals, the threshold rises from $26,000 in 2024 to $27,222 in 2025. Family and pensioner thresholds also see a proportional increase.
Non-Tax Related Budget Measures Affecting Businesses and Nonprofits
Making Student Loans Fairer
- A 20% reduction in outstanding student debts (subject to legislation).
- The repayment income threshold increases from $54,435 (2025) to $67,000 (2026).
Employers should be aware of these changes for workforce planning and payroll management. Hopscotch Accounting can help businesses update their payroll systems accordingly. Speak to our experts.
Energy Bill Relief for Small Businesses
Eligible small businesses will receive two $75 rebates on electricity bills until 31 December 2025. We can help you integrate these savings into your financial planning and budgeting.
Expansion of the Help to Buy Scheme
The government is increasing income caps for homebuyers and linking property price caps to state-based averages. If your nonprofit provides housing assistance, these changes could impact your operations.
Small Business and Franchisee Support
The government is investing $12 million over four years to protect small businesses, including:
- Strengthening ACCC oversight of the Franchising Code of Conduct.
- Enhancing ASIC’s data analytics for enforcement against illegal business practices.
- Creating a Social Enterprise Loan Fund for disadvantaged employment initiatives.
Hopscotch Accounting specialises in financial planning for social enterprises and small businesses. Connect with us today to explore funding opportunities.
Stay Ahead with Hopscotch Accounting
The 2025/26 Federal Budget brings opportunities and challenges for nonprofits and businesses. Hopscotch Accounting is here to help you adapt, strategise, and thrive. Contact us for expert guidance tailored to your financial needs.
