Page 7 - FWP Wealth Adviser Issue 109

ISSUE 109
APRIL 2025

TAX CUTS, HOUSING SUPPORT,

AND HEALTHCARE REFORMS

WHAT THE FEDERAL BUDGET Photo by olia danilevich/www.pexels.com

MEANS FOR YOUR WEALTH

BY WEALTH ADVISER and healthcare improvements—while offering insights
into how Australians can adapt their financial strategies to
Introduction: Framing the Federal Budget’s benefit from these changes.
1 Impact on Australians
The 2025-26 Australian Federal Budget has been un- Tax Reforms: Keeping More
veiled, marking a pivotal moment for households, busi- 2of What You Earn
nesses, and the broader economy. With a strong emphasis One of the standout features of the 2025-26 Federal
on addressing cost-of-living pressures, enhancing housing Budget is its focus on tax relief for individuals and families.
affordability, and improving healthcare access, this budget The government has announced significant changes to per-
aims to provide targeted relief while laying the groundwork sonal income tax rates, which are set to deliver meaningful
for long-term economic resilience. savings for taxpayers over the next two years.
For individuals navigating these changes, understanding From July 2026, the marginal tax rate for middle-income
the budget’s key measures is essential to making informed earners will decrease from 32.5% to 30%, while low-income
financial decisions. Whether it’s leveraging tax cuts to earners will benefit from an increase in the Low-Income Tax
boost disposable income, taking advantage of expanded Offset (LITO). Additionally, adjustments to Medicare levy
housing schemes, or reducing healthcare expenses through thresholds will ensure that more low-income Australians are
enhanced rebates, this year’s budget offers opportunities to exempt from paying this levy, providing further financial
preserve and grow wealth. relief.
This article explores the practical implications of the These measures are expected to boost disposable income
Federal Budget’s major reforms—tax cuts, housing support, and stimulate economic participation. According to NAB’s

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