The 2025–26 Federal Budget continues the Government’s focus on cost-of-living support and housing affordability, with notable implications for high-income earners, business owners, and those with investment interests in Australian land and resources.
Importantly, this Budget also arrives with the shadow of a Federal Election looming—widely expected to be announced within weeks—meaning many of its measures may be designed to win favour with voters and could shift depending on the election outcome.
Here’s contributor Craig Barry’s summary of the key measures relevant to professionals in the mining and resources sector.
Energy bill relief for Australian households
The Government will extend the cost of living support measure announced in last year’s budget by a further six months to the end of 2025. Eligible small businesses and Australian households may be entitled to an energy bill rebate of $150 covering the September and December 2025 quarters. In most cases, the rebate will be applied automatically by the electricity provider and no further action is required.
New personal tax rates for the 2027 and 2028 financial years
From 1 July 2026, the Government proposes further tax cuts to Australian individuals to assist with cost-of living pressures and mitigate bracket creep.
The proposed tax cuts result in:
- A reduction to the 16% tax rate to 15% from 1 July 2026
- A reduction to the 15% tax rate to 14% from 1 July 2027
The tax rates for the 2026/27 and 2027/28 financial year compared to the 2025/26 financial year are as follows:
| Taxable Income $ | Rates in 2025/26 | Rates in 2026/27 | Rates in 2027/28 |
| 0 to 18,200 | Tax free | Tax free | Tax free |
| 18,201 to 45,000 | 16% | 15% | 14% |
| 45,001 to 135,000 | 30% | 30% | 30% |
| 135,001 to 190,000 | 37% | 37% | 37% |
| > 190,000 | 45% | 45% | 45% |
Banning of non-complete clauses
The Government has announced the next tranche of its competition reforms will include banning non-compete clauses for workers earning less than the high-income threshold in the Fair Work Act (currently $175,000).
The Government will also close loopholes in competition law that currently allow businesses to cap workers’ pay and conditions, without the knowledge and agreement of affected workers and use ‘no-poach’ agreements to block staff from being hired by competitors.
The Government intends to consult on policy details, including exemptions, penalties, and transition arrangements and will also consider and consult further on non-solicitation clauses for clients and co-workers and non-compete clauses for high-income workers.
No further extension to the small business $20,000 instant asset write off
Last year’s Federal Budget announced an extension of the $20,000 instant asset write off for small businesses until 30 June 2025. This measure is yet to be legislated.
The Government has not announced a further extension of the instant asset write off in the 2025-26 Budget. Accordingly, even if the measure from last year’s Budget is legislated, the instant asset write off will revert back to its $1,000 limit from 1 July 2025.
Delay of expansion of foreign resident CGT rules
In last year’s Federal Budget, the Government announced measures to strengthen the foreign resident CGT regime. Treasury undertook a consultation process in respect of these measures in July / August 2024.
The measures were intended to apply to CGT events commencing on or after 1 July 2025 but will now be delayed to the later of 1 October 2025, or the first day of January, April, July or October after which the amending Act receives royal assent.
Broadly, these measures seek to expand the types of assets that foreign residents will be subject to Australian CGT on. This will be done by expanding the concept of Taxable Australian Property from real property, leases of land, mining rights or interests in Australian companies that derive their value principally from these assets.
Foreign residents will become subject to Australian CGT on assets which derive their economic value from the use of Australian land and/or natural resources. This would include infrastructure installed on land, energy, telecommunications and transport infrastructure.
The time at which you need to test whether a company principally derives its value from Australian land will also change from a point-in-time test (generally, the time of sale) to include a 365-day period prior to the disposal.
There will also be ATO notification requirements for high-value transactions, which may be required to be made in advance of the sale.
Restricting foreign ownership of housing
As previously announced on 16 February 2025, foreign persons (including temporary residents and foreign-owned companies) will be temporarily banned from 1 April 2025 for two years from purchasing established dwellings in Australia, unless an exception applies.
Exceptions to the ban will include investments that significantly increase housing supply or support the availability of housing on a commercial scale and purchases by foreign owned companies to provide housing for workers in certain circumstances.
This measure supports the Government’s broader agenda to boost Australia’s housing supply, allowing Australians to buy homes that would have otherwise been bought by foreign persons, while encouraging foreign persons to boost Australia’s housing supply. The ATO will be provided with an additional $5.7m to enforce this ban.
Also, additional ATO and Treasury funding will be provided to target land banking. This is to ensure foreign investors comply with requirements to put vacant land to use for residential and commercial developments within reasonable timeframes.
Housing support measures
The Government has announced several housing support measures intended to make it easier for Australians to buy and rent a home. These include:
- A national plan to build 1.2 million new homes over the next five years using the National Housing Accord to create efficient planning and zoning systems
- Investing $54 million to accelerate the uptake of modern prefabricated and modular construction methods
- Committing $800 million to expand the ‘Help To Buy’ scheme which will support around 40,000 Australian households buy a home with a lower deposit and smaller mortgage
- Banning foreign buyers from purchasing existing homes for a two-year period from 1 April 2025 to suppress upward pressure on prices
- Providing $9.3 billion to states and territories to combat homelessness and maintain social housing
- Providing increased incentive payments of $10,000 to eligible housing construction apprentices from 1 July 2025 in a bid to increase the construction workforce
Access to cheaper medicines
The Government will lower the Pharmaceutical Benefits Scheme (PBS) general patient co‑payment from $31.60 to $25.00 on 1 January 2026 for people with a Medicare card and no Commonwealth concession card. The concessional co-payment remains frozen at its current level of $7.70 until 2029.
The Government will also provide funding for new and amended listings on the PBS, as well improving access to medicines and to trial an expansion of the range of services delivered by community pharmacies.
Cutting student debt
The Government is reforming the student loan repayment system announcing a reduction to outstanding Higher Education Loan Program (HELP) and other student debts by 20%, subject to the passage of legislation. This is in addition to the previous reforms to indexation which limit future indexation and retrospectively reducing the indexation applied in the 2023 and 2024 years.
The Government will also increase the repayment income threshold of $54,435 in 2024/25 to $67,000 in 2025/26.
Payday superannuation set to proceed
From 1 July 2026, Government intends to proceed with introducing major reforms to the Superannuation Guarantee regime, requiring employers to align payment of an employee’s Superannuation Guarantee contributions within seven days of paying the employee’s salary and wages.
These payday superannuation measures were first announced by the Treasurer on 2 May 2023 in the 2023-24 Federal Budget. Draft legislation was released by Treasury just prior to the 2025-26 Budget on 14 March 2025.
The measures remove the current quarterly due dates, replacing the date of liability to seven calendar days from when the employee is paid. Unlike current provisions, the revised Superannuation Guarantee charge (including both on time and late contributions, plus an administrative uplift component) will be tax deductible – however, the introduction of non-deductible general interest charges and penalties aim to encourage employers to pay on time.
Superannuation Guarantee increase to 12%
The Superannuation Guarantee rate is set to increase from the current 11.5% to 12% from 1 July 2025 onwards.
This is the final increase to the Superannuation Guarantee rate based on previous legislation.
This is an opportunity for employers to review their existing payroll systems and processes to ensure accurate reporting and payment of the increased rate in the new financial year. Employers should also consider the potential impact of the draft Payday Super legislation that is proposed to take effect from 1 July 2026.
Enhanced funding for ATO compliance programs
The Government has announced that it will provide the ATO with $999m over four years to strengthen the fairness and sustainability of Australia’s tax system.
The funding will go toward extending and expanding existing ATO audit and compliance programs, including the Tax Avoidance Taskforce, which supports the ATO’s scrutiny of tax compliance for large taxpayers, as well as programs that target the shadow economy, prevent and correct non-compliance activities, and ensure the timely payment of tax and superannuation liabilities by medium and large businesses and wealthy groups.
The significant increase in funding for the ATO programs across all taxpayer populations and risk areas will result in increased audit and compliance activity and scrutiny of taxpayer lodgements.
What This Means for You
From tax cuts and super reforms to housing restrictions and business deductions, this year’s Budget packs a mix of opportunities and obligations. If you’re in the mining and resources sector — especially in business ownership, investment or high-income brackets — now is the time to assess how these measures may impact you.
To learn more about how the Federal Budget may affect you or your business, please contact Craig Barry, Resources Unearthed on +61 (0) 7 3007 2000 or email contact@resourcesunearthed.com.au.
For William Buck’s Full 2025/26 Federal Budget Analysis click here.
Read more about Craig here.
Resources Unearthed is a solutions hub that provides integrated financial, legal, property and accounting and business advisory services for executives, professionals and business owners in the mining and resources sectors.
