Global Mobility Tax

Australia | 2025-2026 Federal Budget insights

Summary

With an election around the corner, the Albanese Government handed down its Federal Budget on Tuesday 25 March 2025. This Alert addresses the workforce tax, payroll and immigration measures announced.

From a global mobility perspective, there were limited announcements – highlighting the Government’s clear focus on domestic priorities this year.

The detail

Workforce tax and payroll

The Government has announced new individual income tax rate cuts, with the 16% tax band to be reduced to 15% from 1 July 2026 and 14% from 1 July 2027.

Up to 30 June 2026		From 1 July 2026		From 1 July 2027
Tax rate	Income band	Tax rate	Income band	Tax rate	Income band
0%	0 – 18,200	0%	0 – 18,200	0%	0 – 18,200
16%	18,201 – 45,000	15%	18,201 – 45,000	14%	18,201 – 45,000
30%	45,001 – 135,000	30%	45,001 – 135,000	30%	45,001 – 135,000
37%	135,001 – 190,000	37%	135,001 – 190,000	37%	135,001 – 190,000
45%	190,001 +	45%	190,001 +	45%	190,001 +

Tax updates that may be of interest to your employees:

• Previously announced in November 2024, the Government will reduce outstanding student loans by 20% and reform the repayment system with higher minimum repayment thresholds. This is in addition to the already legislated cap on HELP indexation to be based on the lower of the Consumer Price Index or the Wage Price Index.
• There will be a further increase to Medicare levy low-income thresholds for singles, families, and seniors and pensioners from 1 July 2024 to continue to provide cost-of-living relief.
• There will be a temporary ban on foreign persons (including temporary residents) from purchasing established dwelling between 1 April 2025 to 31 March 2027. This was previously announced by the Government on 16 February 2025 and more information about this announcement can be found at the ATO website.

Immigration

Immigration did not feature prominently in this year’s Budget, however there were some measures announced for your interest.

• Net overseas migration (NOM) is declining from its peak in 2022–23 reflecting lower migrant arrivals. Per Budget papers, the NOM is forecast to ease further over the coming years. Arrivals are expected to continue to decline in 2024–25 before stabilising in 2025–26. Departures are expected to pick up from recent sustained lows as more people who arrived after the pandemic near the expiry of their visa.
• This includes $20M to boost economic ties with India through establishing an Australia‑India Trade and Investment Accelerator Fund, with a view to supporting cooperative projects targeted at reducing technical and regulatory barriers to trade.
• The Federal Government will work with states, territories, unions and employers on a national occupational licence for electrical trades. This could set a template for broader occupational licensing reform.
• An additional $7.7M will be provided to extend the Economic Pathways to Refugee Integration program to boost refugee employment.

To hear more about the Budget measures announced and insights for your year-end reporting and compliance, please join our year end compliance webinar on Thursday 3 April at 1.30pm AEDT. Register here.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Shane Smailes
Partner – Tax

Emma Wappet
Partner – Payroll

Cherie Wright
Partner – Immigration

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