— Written for contractors, salaried health workers & clinic owners
The 2025–26 Federal Budget has just dropped, and while there’s a lot of political talk, here’s what you actually need to know — especially if you’re working in healthcare, running your own practice, or contracting in the health space.
Let’s break it down in real terms (and plain English), including which measures have been passed and which still need to go through Parliament.
1. Stage 3 Tax Cuts Are Still On — and Passed
The Government confirmed changes to the Stage 3 tax cuts have passed Parliament and will apply from 1 July 2024 (i.e. the 2024–25 financial year).
What this means:
If you earn between $45,000 and $200,000, you’ll likely pay less tax from July this year. Whether you’re salaried, contracting, or running a business — this is good news.
2. Banning Non-Compete Clauses — Proposed Only
The Government plans to ban non-compete clauses for workers earning under the high-income threshold (currently $175,000). This would allow more flexibility for workers to switch jobs or take on more clients without being restricted by former employers.
🚨 Status: Not law yet — still needs to pass Parliament.
3. Cracking Down on No-Poach & Wage-Fixing Deals — Proposed Only
Some businesses currently make quiet agreements not to hire each other’s staff or to keep wages down. The Government is planning to ban these anti-competitive practices.
Why this matters:
Better job mobility, more opportunities, and fairer pay — especially for locums, contractors, and allied health workers.
Status: Also proposed — awaiting parliamentary approval.
4. More Funding for Medicare & Public Hospitals — Passed
There’s increased funding in the Budget for:
- Medicare services
- Bulk billing incentives
- Public hospitals
- Aged care services
Status: These are part of the Budget and will go ahead, boosting long-term support for healthcare providers and services.
5. Support for Small Businesses & Sole Traders — Mixed Bag
If you’re a clinic owner or sole trader, here’s what’s relevant:
- Instant Asset Write-Off is expected to continue — allowing you to instantly deduct eligible purchases.
➤ Status: Pending legislation — not yet law. - More government-funded mental health and wellbeing support for small business owners.
➤ Status: Budget funded — will proceed.
What You Should Do Next
Whether you’re a GP, dentist, allied health contractor, or clinic owner, here’s how to make the most of what’s coming:
Keep receipts and records for any asset purchases in case the write-off rules pass.
Plan ahead for lower tax rates from July.
Watch for law changes (we’ll keep you updated).
Need personalised advice?
We’re here to support you with tax planning, compliance, and smart structuring — so you can focus on caring for your patients.