Especially for Business Owners and High-Income Professionals
Overview
The 2025–26 Federal Budget has landed. While the headlines focused on cost-of-living relief and tax cuts, there are several key takeaways that warrant closer attention from business owners, high-income earners, and financially engaged families.
This briefing cuts through the political noise to highlight what matters most — the financial planning opportunities and risks that may impact your business, personal finances, and long-term wealth strategies.
1. Tax Cuts for Individuals — Revisit Your Personal Tax Strategy
From 1 July 2025, the government will roll out a revised Stage 3 tax cut package, benefiting all income earners — but particularly middle to higher income earners.
Key Highlights:
- The 32.5% marginal tax rate will drop to 30% for incomes between $45,001 and $135,000.
- The 37% marginal tax bracket returns for incomes between $135,001 and $190,000.
- The top marginal rate (45%) still kicks in above $190,000.
What This Means:
- If you're earning over $135,000, your marginal tax rate will reduce slightly, providing scope for:
- Reviewing salary packaging strategies
- Reassessing superannuation contributions and dividend planning
- Potential timing of income, particularly for bonuses or director’s fees
2. Superannuation — Deeming Rates Stay, Planning Opportunities Remain
The government announced the extension of current deeming rates for the 2025–26 financial year.
Why This Matters:
- Lower deeming rates help retirees qualify more easily for the Age Pension and preserve concessional treatment of income-tested entitlements.
- For those approaching retirement, this provides a window to implement or fine-tune income stream strategies, particularly around Account-Based Pensions.
Action Point:
- Review your or your family members’ retirement income structures. Lower deeming may present a short-term planning opportunity.
3. Small Business Measures — Limited Relief, Strategic Review Advised
While the budget offered some cost-of-living support for small businesses, broader structural reforms were lacking.
Measures Announced:
- $325 energy bill rebate for eligible small businesses from July 2025
- Continuation of instant asset write-off (capped at $20,000) until 30 June 2026
What This Means:
- These are modest offsets for rising input costs — not game changers.
- Business owners should continue to focus on tax planning, cash flow optimisation, and asset protection strategies.
Consider:
- Reviewing business structure efficiency
- Revisiting loan and equipment finance arrangements
- Strategic use of company or trust distributions ahead of EOFY
4. First Home Buyer Expansion — Implications for Family Wealth Transfer
The government expanded its Shared Equity Scheme to include existing homes and increased the income cap to $100,000.
Planning Implication:
- For families supporting adult children into property, this offers a new pathway.
- Advisers can play a role in coordinating gifting strategies, guarantees, or family trust distributions in tandem with the scheme.
5. Healthcare Investment — Aged Care and Estate Planning Relevance
An additional $7.9 billion is being directed to the healthcare sector, with increased support for bulk billing and aged care reform.
For Advisers and Clients:
- This may reduce out-of-pocket health costs for retirees, influencing projections for retirement capital needs.
- Ongoing reforms to aged care mean now is a good time to review:
- Aged care RAD and DAP funding options
- Enduring Power of Attorney and estate documentation
- Intergenerational wealth planning
6. What’s Missing — No Direct Help for the Financial Advice Industry (Yet)
The Budget didn’t deliver on long-awaited reforms for advisers or structural support for Australians accessing advice.
However, the need for strategic financial advice has never been greater — especially for high-income families managing tax, super, business succession, and intergenerational wealth.
Final Thoughts
While the budget headlines are modest, the underlying shifts — especially around tax, retirement income, and cost-of-living pressures — present valuable advice moments.
This is a great time to:
- Revisit your 2025–26 tax and super plan
- Evaluate your business structure and cash flow position
- Review family financial goals, including retirement, home buying, and legacy strategies
If you'd like a personalised review based on your position as a business owner, executive, or family trustee — we’re here to help.
