Budget 2025-26: What It Means for Your Taxes and Finances

As the dust settles on the Federal Budget 2025–26, businesses and individuals across Australia are beginning to unpack what the latest announcements mean for their bottom line. Whether you're running a small business, launching a startup, managing personal investments, or seeking smarter financial strategies, this budget introduces a range of significant tax reforms, healthcare levy updates, and foreign ownership regulations that deserve your attention.

At Worldwide Advisory, our mission is to help you not just understand these changes — but turn them into opportunities. Here’s a comprehensive breakdown of what you need to know.

🔍 Key Tax Changes in the 2025–26 Budget

1. Personal Income Tax Cuts – Stage 3 Adjustments Locked In

The Federal Government has confirmed that the long-discussed Stage 3 tax cuts will go ahead in the 2025–26 financial year. These changes are set to simplify the tax system and offer meaningful relief, particularly for middle-income earners and small business owners.

Here’s what’s changing:

• The 37% tax bracket has been removed entirely.
  

• A new 30% tax rate now applies to incomes between $45,001 and $200,000, replacing previous brackets.
  

• The highest tax rate of 45% still applies to income above $200,000.
  

✅ Impact:

This adjustment significantly increases take-home pay for a large portion of the workforce. For sole traders, entrepreneurs, and small business operators, that means more disposable income, improved cash flow, and enhanced business planning capacity. It also reduces bracket creep, where inflation pushes incomes into higher tax brackets without real income growth.

2. Medicare Levy Threshold Increases

Building on last year’s momentum, the government has raised the Medicare levy thresholds once again to reflect rising living costs and support low- to middle-income Australians.

Updated thresholds include:

• Higher exemption levels for individuals, couples, and families.
  

• Reduced or zero Medicare levy payable for those earning below the revised limits.

✅ Impact:

Lower tax liabilities translate to potential savings in the thousands, particularly for self-employed individuals and small business owners. This additional cash can be reinvested into your business, used to boost savings, or applied toward debt reduction. Combined with the Stage 3 tax cuts, this is a powerful opportunity to rework your annual financial plan.

3. Stricter Foreign Ownership Rules for Property

To address rising property prices and housing affordability concerns, the government has introduced tougher regulations on foreign ownership of Australian residential property.

Key changes include:

• Higher application fees for foreign investors purchasing Australian residential real estate.

  
  

• Increased vacancy fees for under-utilised properties owned by foreign entities.

  
  

• Greater regulatory scrutiny and enforcement of compliance obligations.

✅ Impact:

If your business or trust structure includes foreign elements — particularly in real estate investment — it’s crucial to review your strategy and legal compliance immediately. Non-compliance or missteps in ownership structure could now lead to significant financial penalties and legal risks.

💼 Why This Budget Matters for Businesses

While the Budget 2025–26 delivers meaningful tax relief, it also signals a shifting compliance environment. This is both an opportunity and a wake-up call for business owners to modernise their financial strategies.

What your business should consider:

• Leverage tax cuts to reinvest in operations, innovation, or staffing.

  
  

• Restructure your business entity to optimise tax efficiency.

  
  

• Plan your cash flow around updated Medicare levy and tax rates.

  
  

• Audit property and investment holdings to ensure compliance with foreign ownership laws.

  
  

Whether you're scaling up or just getting started, this is the time to think strategically.

🧠 How Worldwide Advisory Can Help

We don’t just interpret the Budget — we help you act on it.

At Worldwide Advisory, we combine deep industry knowledge with practical financial strategy to help you get ahead. Our advisors are specialists in accounting, taxation, and business advisory services, and we're committed to helping you turn regulatory changes into financial wins.

Here’s how we support you:

• Strategic guidance tailored to your unique business structure.

  
  

• Tax savings reviews to ensure you're capturing every available benefit.

  
  

• Expert support with compliance, especially around foreign investment laws.

  
  

• Long-term planning to ensure your finances grow with your business.

📞 Let’s Talk About Your Next Financial Move

Whether you’re a business owner, a property investor, or just getting started, Worldwide Advisory can help you make sense of Budget 2025–26 and transform these updates into opportunities for growth.

📲 Call us on +61 7 3180 1684

📧 Email us at contact@worldwideadvisory.au

Your financial strategy deserves expert insight — and that’s exactly what we deliver.