The Federal Government delivered its updated 2026 Budget on Tuesday, 12 May 2026.

It confirmed a three‑phase approach to scaling back the EV Discount to a permanent 25% fringe benefits tax discount from 1 April 2029. Read more here.

A $250 annual tax cut starts 1 July 2027. The tax rate for income between $18,201 and $45,000 drops from 16% to 15% on 1 July 2026, then 14% on 1 July 2027.

Overall, we expect minimal impact to most salary packaging arrangements. A proposed $1,000 instant tax deduction from 1 July 2026 may affect some customers.

We’ll share updates as more details are confirmed.

What happens next?

There is nothing you need to do. You can continue to package as normal.

We’re here to help

If you have any questions about your salary packaging or novated leasing arrangements, please contact us.