We will provide updates for major spending decisions for Budget 2025. This spending covers Working for Families, Investment Boost, as well as increased and continuing investment in compliance.
Working for Families – Abatement changes
The abatement threshold will increase. The new rate will apply for entitlement periods (tax years) starting on and after 1 April 2026.
Entitlement distribution information will be available from mid-2028, after we’ve finalised the 2026-27 entitlement period.
Investment Boost – Partial Expensing Regime
Investment Boost is a new tax deduction for all businesses. From 22 May 2025, businesses can claim 20% of the cost of new assets as an expense, then claim depreciation as usual on the remaining 80%. Go to our new page to find out more.
We will confirm later how we will report on this initiative.
Compliance Activities – Increased Investment and Continuation of Funding
We have received more funding to increase investment in our tax compliance and debt management activities. This funding adds to the Budget 2024 compliance investment.
We have also kept time-limited funding and will use it for:
- a continued focus on unfiled returns
- resolving debt
- voluntary disclosures
- activities to provide certainty and advice to customers on complex structures
- on-going audit activity.
Increased compliance activity and continuation of funding initiative performance is incorporated in the following measures. Results will not be separately identifiable.
Measure 1: Revenue and recovered or disallowed expenditure through IR interventions
- 2025-26 minimum target $1,208m
- 2026-27 minimum target $1,314m
Measure 2: Cash collected from overdue debt activities
- 2025-26 minimum target $4,195.4m
- 2026-27 minimum target $4,263.4m