Federal Budget 2025: What It Means for Beauty, Dermal & Aesthetic Businesses and Professionals

The 2025 Federal Budget has landed, and it brings some exciting and long-awaited changes that could significantly benefit the beauty and aesthetic industry. From more money in the pockets of employees to regulatory changes that impact employment contracts - here's what you need to know:

1. Bigger Tax Cuts for Lower-Paid Workers

Starting 1 July 2026, workers earning above $18,200 will receive a tax cut, with lower- and middle-income earners benefiting the most.

• If you earn $40,000, you will receive around $654
• At $60,000, expect around $1,179
• At $100,000, it increases to around $2,179

This is great news for our industry, where many workers, such as junior therapists, apprentices, reception staff, and part-time employees, fall into the $40 to $70k income bracket. It means more take-home pay, increased financial comfort, and possibly greater consumer spending on personal care services.

2. Ban on Non-Compete Clauses for Most Workers

A major reform is the proposed ban on non-compete clauses in employment contracts for workers earning less than $175,000 per year, set to take effect from 2027.  This will significantly impact the beauty and aesthetic industry, where non-competes are often used to restrict movement between clinics or prevent staff from starting their own ventures.

What this means:

• Employees: More freedom to pursue new jobs or launch their own businesses
• Employers: A shift toward building strong team cultures and incentives to retain staff, as legal restraints will no longer be a tool for retention
• Industry-wide: Increased innovation, more startups, and a more dynamic workforce

3. Energy Bill Relief for Small Businesses

Running a clinic or salon comes with high overheads and electricity is one of them. The budget includes a $150 energy rebate for around 1 million small businesses, offering some welcomed cost-of-living relief for owners across the country.

In Summary:

This year's budget delivers clear wins for both business owners and employees in the beauty, dermal and aesthetic space. It supports higher take-home pay, business growth, and a more open and mobile workforce.  ABIC is here to help you navigate these changes.  Have a question or opinion to share?  We would love to hear from you. 

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