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“This will take the first tax rate down to its lowest level in more than half a century,” Chalmers told the House of Representatives.

“These additional tax cuts are modest, but will make a difference.

“The average earner will have an extra $536 in their pocket each year when they’re fully implemented. Combined with our first round of tax cuts, this rises to $2,190. And the average total tax cut will be $2,548, or about $50 a week.”

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Income taxes will be cut further over two years: From 1 July 2026, it will reduce the 16 per cent tax rate to 15 per cent (for income between $18,201 and $45,000), and then from 1 July 2027, this tax rate will be reduced further to 14 per cent.

Other measures included in the budget were an increase to the Medicare levy low‑income thresholds amendments to the managed investment trust (MIT) rules, clarifying the eligibility of foreign widely held investors, such as foreign pension funds, to access MIT concessions.

However, such measures took a “secondary role” to cost-of-living relief and other announcements, DLA Piper noted. Firm partner Eddie Ahn said: “Given the upcoming federal election expected in May, it is no surprise that the budget emphasised cost-of-living relief rather than major tax reforms.”

For example, as pointed out by the Committee for Economic Development post-budget, while further tax cuts will be welcomed by households, the announced measures fail to address ongoing issues concerning bracket creep.

Elsewhere – outside of the extension of energy relief through to the end of 2025, prolonging unfair trading practices protections – there was little for small businesses to celebrate.

Macpherson Kelley’s head of tax, John Ioannou, was more scathing than Ahn: “For business owners and their advisers expecting little to nothing in the budget ‘that was not meant to be’ – you would not be disappointed.”

“Unlike the budgets of old that were akin to waiting for a film premiere where you would grab your popcorn, find like-minded people and enthusiastically watch it unfold, this was akin to a lacklustre free-to-air program that had the hallmarks of B-grade actors and no budget (excuse the pun).

“The ‘nothingness’ should not be a surprise, however.

“Given the impending election, it was inescapable that there would be an absence of substantive proactive measures given the lack of appetite for a much-needed tax reform.”

Corrs Chambers Westgarth head of tax Cameron Blackwood had similar views, noting Australia is seeing “piecemeal tax reform”, with multiple changes unfolding across different timelines – some already legislated, some proposed but not yet enacted, and others still taking shape.

“For example, whilst the thin cap associated provisions have been legislated, taxpayers are still grappling with how to implement these provisions. We’re still waiting for changes that expand the tax base for non-residents, give clarity to corporate tax residency and yet another expansion to the general anti-avoidance rule to be legislated. Not to mention the uncertainty created for in-bound investors using managed investment trusts in the last few weeks,” he said.

“This ambiguity poses significant challenges for any major businesses in Australia with cross-border operations, hampering their ability to plan beyond the immediate future and leading to increased costs, heightened complexity, and widespread inefficiencies across the economy.”

This “fragmented” approach, Blackwood suggested, makes it difficult for businesses to plan and invest with confidence.

“While targeted changes may address certain immediate concerns, they fall short of delivering the meaningful, holistic tax reform Australia needs,” he said.

What is clear post-budget, Ioannou pointed out, is that greater scrutiny of advisers and their clients can be expected.

“Both the ATO and TPB (Tax Practitioners Board) received additional funding to continue extending and deepening their compliance and enforcement programs. While not a budget announcement, lawyers need to be on the lookout, too, given the growing notion that those recalcitrant on personal lodgements may not be fit and proper persons in respect of being a legal practitioner,” Ioannou said.

Fortunately, he added, “there were no announcements on rewrites or amendments to divisions 6, 7A or anything else noteworthy for private business advisers. Another positive for those commercially minded people is a deferral of the new regime applicable to foreign residents for CGT. Whilst a good idea in theory, it will inevitably just hold up commercial transactions in the future.”

What is needed, Blackwood said, is a “clear, structured, tax policy framework”.

It should, he said, provide “long-term certainty, encourage economic growth, and ensure Australia remains competitive in the global market”.

“Stability and predictability in the tax system are critical for businesses making strategic decisions. What we need is a more cohesive and sustainable tax reform agenda,” he said.