The Australian Government has just handed down the 2025/26 Federal Budget, and some important changes could make everyday life a little easier. If you’re feeling the pinch with day-to-day expenses or wondering what support is out there, you’re not alone, and there’s some promising news.
The Australian Government has outlined a range of measures aimed at easing pressure on households and businesses. Here’s a breakdown of what was announced and how it might affect you.
A break for student loan holders
If you’ve got a HELP or student debt, there’s relief on the way. The Government has announced a 20% reduction on all outstanding student loans. This sits alongside recent changes to indexation, which were introduced to stop debts from growing faster than they should.
Even better, from the 2026 income year, the threshold for repayments will rise from $54,435 to $67,000. That means more of your income stays in your pocket for longer, giving graduates a better chance to get on their feet financially.
Help with energy bills
Cost of living pressures continue to be felt across the country, and the Government is stepping in with some direct support. Eligible households and small businesses will receive two $75 rebates, applied straight to their electricity bills between now and the end of December 2025.
It might not solve everything, but every little bit helps.
Tax relief on the horizon
Some welcome tax cuts are also on the way. From 1 July 2026, the personal income tax rate of 16% will drop to 15%, and then to 14% in 2028.
For people earning between $18,201 and $45,000, that could mean savings of up to $268 in 2027 and $536 in 2028. It’s a small but meaningful change that should make a difference for many working Australians.
More freedom to change jobs
In a move to support fairer workplaces, the Government will ban non-compete clauses for workers earning under $175,000. These clauses often stop people from moving to better opportunities, so their removal is a win for flexibility and choice.
There’ll also be a crackdown on wage-fixing and “no-poach” agreements, which can unfairly hold wages down. These reforms aim to create a more open and fair job market for everyone.
What it all means
While not every change will affect everyone, these updates are designed to take a bit of pressure off and open up more opportunities – whether you’re studying, working or running a small business.
If you’re not sure how these changes might apply to your situation, or if you’d like to speak with someone about your plans, we’re here to help.
Written by APS Chief Financial Officer and head of APS Tax Accounting and Business Services, Stephen Fry.
Stephen is an accountant with over 13 years of professional expertise in the areas of taxation and accounting. Currently serving as Chief Financial Officer and head of APS Tax Accounting and Business Services, Stephen offers comprehensive guidance and ensures compliance in all tax-related matters. He has developed a specialised focus in areas such as self-managed superannuation funds, cryptocurrency taxation and leveraging software and technology to assist clients in streamlining their processes. Beyond his professional pursuits, Stephen cherishes quality time with his family and enjoys unwinding on the golf course. On the weekends he also enjoys following the AFL and watching British comedy television.