An analysis by Corrs Chambers Westgarth, Taxand Australia
The Australian Government has recently announced the details of the 2025-26 Federal Budget, prioritising discretionary spending ahead of an anticipated close election and avoiding major corporate tax reforms. Tax experts from our Australian member firm Corrs Chambers Westgarth have published a detailed analysis of the budget, which includes:
A staged reduction of the 16% personal income tax rate to 14%, commencing on 1 July 2026—a move consistent with the government’s pre-election focus on individual tax relief rather than broader structural reforms.
Reaffirmed its intention to amend the rules for Managed Investment Trusts (MITs) but provided no further details.
The commencement of both the clean building MIT concession for data centres and changes to the Foreign Resident Capital Gains Tax (CGT) regime has been deferred.
The Australian Taxation Office (ATO) will receive $999 million to expand compliance efforts, with $717.8 million directed at the Tax Avoidance Taskforce, targeting multinationals. The Tax Practitioners Board (TPB) will get $27.3 million to strengthen sanctions and boost compliance activities.
Foreign investors face tighter scrutiny, with expanded tax conditions and disclosures required during the Foreign Investment Review Board (FIRB) process, while the government will not introduce crypto-specific tax laws, relying on existing legislation and ATO guidance
You can read the full analysis of the budget and its implications here.
Thank you for downloading
For similar content to our Global Guide, subscribe to our mailing list and keep up to date.
