2025 Budget Ag Sector Impact
- Nijo Antony
- Mar 24
- 2 min read
Budget at a Glance
Deficit: $42.1 billion
GDP growth: 2.25% forecast for 2025–26
Unemployment: Low at 4.25%
Inflation: Expected to normalise mid-2025
Individuals & Families
Personal Income Tax Cuts
From 1 July 2026, the 16% tax bracket drops to 15%, then to 14% in 2027
Up to $536/year savings from 2027–28
Medicare Levy Thresholds Lifted
Effective 1 July 2024 – more low-income earners may avoid the levy
Energy Bill Relief
$150 rebates extended to end of 2025 for households
Healthcare Improvements
$7.9bn for bulk billing expansion
50 new Urgent Care Clinics
PBS medicine cost capped at $25
Childcare & Education
3-day subsidised childcare guarantee (from Jan 2026)
20% cut to HELP debt & fairer repayment thresholds (from July 2025)
Business Owners & Employers
Small Business Instant Asset Write-Off
$20,000 proposed for 2024–25 (pending legislation)
Changes to Employment Contracts
Non-compete clauses to be banned for most workers – contract reviews recommended
ATO Compliance Expansion
Nearly $1bn allocated to increase scrutiny of business and high-wealth individual tax compliance
Hospitality Support
Beer excise frozen; support extended to small wine and alcohol producers
Spotlight on Agriculture
As a firm with deep roots in the primary production industry, we know this sector is facing increasing challenges from climate, market volatility, input costs, and workforce shortages.
This Budget includes a range of targeted supports:
1. Disaster Recovery Support
$136.3 million in recovery grants for primary producers, small businesses and not-for-profits affected by Cyclone Alfred and recent floods in QLD and NSW.
Support includes clean-up, repairs, and environmental recovery.
$1.2 billion has been reserved in the Contingency Reserve for future disasters, acknowledging the increased frequency of extreme weather.
2. Agri-Tech, Research & Sustainability
New investments in climate-smart farming to increase productivity and resilience.
Enhanced access to agri-data, forecasting tools, and partnerships with research organisations.
Support for low-emissions farming and adoption of new technologies to improve yield and reduce input costs.
3. Export Market Access & Biosecurity
Strengthening biosecurity measures to protect Australia’s export reputation.
Continued funding to expand market access and maintain trade opportunities globally.
Vital for beef, grain, horticulture, and cotton producers engaged in export.
4. Workforce & Regional Skills Initiatives
Up to $10,000 payments for eligible apprentices in construction, trades and infrastructure roles supporting the agriculture supply chain.
Funding to support regional training hubs and TAFE placements.
Focus on alleviating skills shortages on-farm and in ag-support sectors.
5. Water Infrastructure and Basin Management
Ongoing investment under the National Water Grid Fund to improve irrigation networks and long-term water security.
Continued implementation of the Murray-Darling Basin Plan with an eye on balancing environmental, farming and community needs.
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