FEDERAL BUDGET 2025-26

Lowe Lippmann Chartered Accountants

SUMMARY AND FULL COMMENTARY UPDATES

The 2025-26 Federal Budget was handed down by Federal Treasurer, Dr Jim Chalmers on the evening of Tuesday 25 March 2025.


Lowe Lippmann is pleased to provide the following commentaries, explaining the key issues released in the budget.

Read Summary Read Full Commentary

This Federal Budget has been unique, compared to recent years, being very light on proposed tax changes. This is due to the impending Federal Election in the next few months, with substantial proposed tax changes likely being withheld for now to be used as election promises. For now, there are minimal tax changes that will have significant impact today, but we expect (and encourage) some significant tax reform be considered by the current Federal Government sooner rather than later.


For further clarification, contact your Relationship Partner at Lowe Lippmann.

Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

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Practice Update – April 2025

April 1, 2025
ATO's new focus for small business The ATO is currently focusing on the following 'specific risk areas', where it is concerned "small businesses are getting it wrong": Contractors omitting income — with a focus on data matching to ensure all income is reported. Quarterly to monthly BAS reporting for GST purposes — The ATO will move around 3,500 small businesses with a history of non-compliance to monthly reporting from 1 April 2025. Small business boost claims — with a focus on encouraging self-amendments to correct errors and omissions. The ATO will also continue its focus on non-commercial business losses, small business capital gains tax ( CGT ) concessions, business income that is not personal income, incorrect claims for 'small business boosts', GST registration and income of taxi, limousine and ride-sourcing services.

Tax Alert - Bill passed for Instant Asset Write-Off of $20,000 for 2024-25

March 27, 2025
Bill passed for Instant Asset Write-Off of $20,000 for 2024-25 There was no mention of the extension of the instant asset write-off ( IAWO ) within the Federal Budget delivered last Tuesday night, leaving many small business taxpayers frustrated and uncertain. However, the Treasury Laws Amendment (Tax Incentives and Integrity) Bill 2025 has now been passed through the Parliament, and it included the extension of the IAWO threshold of $20,000 for assets first used or installed ready for use between 1 July 2024 and 30 June 2025. After the Bill has now been passed by both the House of Representatives and the Senate, it now simply waits to receive Royal assent.

Tax Alert - ATO appeals to High Court in the Bendel Case decision

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ATO appeals to High Court in the Bendel Case decision The Australian Taxation Office ( ATO ) has now applied to the High Court for special leave to appeal the Full Federal Court’s decision in FCT v Bendel [2025] FCAFC 15. Last month, we released a Tax Alert ( see here ) after the Federal Court delivered their unanimous decision that an unpaid present entitlement (or UPE ) owed by a discretionary trust to a corporate beneficiary is not a “loan” for Division 7A purposes. The ATO has also issued an Interim Decision Impact Statement ( DIS ) in response to the Full Federal Court decision. A DIS provides information for taxpayers and advisers, and includes: details of the case, a brief summary of facts, issues decided by the court or tribunal, and relevant legislation and case law.
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