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Taxpayers and practitioners are set to remain on “shaky ground” following the budget's failure to address a range of unenacted tax measures, The Tax Institute has warned.
Government kicks unenacted tax matters ‘down the road’: The Tax Institute
01 April 2025
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8 minute read
Last week's Federal Budget has failed to provide any clarity on the future of a number of announced but unenacted measures, leaving the tax profession in an uncertain position.
Julie Abdalla, head of tax and legal at The Tax Institute, said the 2025–2026 federal budget failed to substantially address several announced but unenacted tax measures.
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“The priorities evident in this budget were alleviating cost of living pressures, healthcare, housing, education and strengthening the economy. But how will we fund these measures?” she asked.
“There were very few mentions of tax measures in this budget, and it is disappointing that the uncertainty on so many announced but unenacted measures will continue at least until after the federal election.”
Abdalla said reforming the tax system was the only way the government could significantly pay down debt and alleviate pressure on Australian families and businesses, as well as fund public services.
According to The Tax Institute, announced but unenacted measures meant tax practitioners were left in a challenging position when providing advice according to the current laws, which were subject to change if announced measures were enacted.
These measures could have a significant effect on a client's business decisions and tax position and the uncertainty surrounding them makes it difficult for business owners to plan ahead, the institute said.
“It’s difficult for taxpayers, perhaps especially small business owners, to make commercial decisions, and manage their tax affairs, when tax measures that may substantially affect them remain unsolved for years on end,” Abdalla said.
“Many of the current unenacted measures were announced some time ago, and still, there is no clarity as to how, when, and indeed whether, they will be enacted or abandoned.”
The Tax Institute has pledged to continue advocating on behalf of its members and would seek certainty around various tax measures and much-needed holistic tax reform.
The slight tax cut announced in the budget was welcomed by the institute. However, it noted that this would not address pervasive bracket creep or Australia’s overreliance on personal income tax as a main source of revenue.
Abdalla said the budget did provide some certainty about the approach to the TPB sanctions regime and registration framework, but there was a clear indication that the government did not intend to pursue certain changes it had previously canvassed during consultation.
“Of course, there is always uncertainty in an election year, even in relation to the measures that were announced in the budget. The fate of any tax policy or announced by unenacted measure is dependent upon the government being re-elected, or a new government being formed, and then navigating the enabling legislation through parliament,” she said.
“At the moment, while there are some indications of the government's intentions and priorities, making any kind of concrete prediction about what our tax policy or any of these measures will look like this time next year is precarious.”
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