The 2025-26 Federal Budget is focused on ‘Turning a corner’ and ‘Building Australia’s future’.
There is a strong focus on delivering responsible cost of living relief, strengthening Medicare, and investing in education.
The global economy is facing considerable uncertainty and growth and is expected to remain subdued over the next three years. The recent escalation of trade tensions has magnified risks to the global outlook, as new trade barriers threaten to disrupt global trade, investment, economic activity and push up prices.
As such, economic growth is expected to remain subdued over the forecast period at 1.5 per cent for the current financial year, rising to 2.25 per cent in 2025-26 and then improving slightly over the forward estimates. The unemployment rate will remain low by historical standards and is forecast to reach a peak this year of 4.25 per cent.
Inflation has moderated substantially across both headline and underlying measures. Headline inflation is expected to be 2.5 per cent by the middle of this year, 0.5 percent lower than forecast at MYEFO.
This budget includes measures to extend protections from Unfair Trading Practices and Unfair Contract Terms to all automotive franchised new car and truck dealers, which were announced early last week. Also included is funding of $7.1 million over 2 years to strengthen the ACCC enforcement of the Franchising Code of Conduct.
While the funding commitment to extend these protections is very welcome, it is disappointing that a key business measure, the instant asset write-off, has been scrapped for the 2025-26 FY.
We have prepared the attached 2025-26 Budget Briefing paper for members which provides a summary and brief explanation of the measures that are relevant.
AADA is also hosting a member webinar this Friday, to break down what the extended protections could mean for dealers and will provide a federal budget briefing covering critical industry developments.
Name: Understanding the Latest Industry Reforms
Date: Friday 28 March 2025
Time: 12:30pm – 1:30pm AEDT
Location: Microsoft Teams
Register: https://bit.ly/4hA6wbK
Further details about the 2025-26 Federal Budget are also available on the Government’s Budget Website.
