Trump’s Big Beautiful Bill: Here’s what investors need to know and 5 ASX stocks that will be beneficiaries!

Since President Trump returned to the White House, everyone’s been watching what he’s been doing on tariffs, but we think his Big Beautiful Bill could have a far greater impact on certain companies. At face value, it is nothing more than cementing tax cuts from his first term that were due to expire. But there’s a lot more to it than that.

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Trump’s Big Beautiful Bill: What investors need to know

Enacted July 4, 2025, the bill delivers sweeping tax and spending reforms central to Trump’s second-term agenda. It includes roughly $4–4.5 trillion in permanent tax cuts (including 2017 Tax Cuts & Jobs Act extensions), cuts to Medicaid and SNAP, expansions in military and border spending, elimination of clean energy tax credits, and other sweeping welfare reforms.

Beneficiaries from Trump’s Big Beautiful Bill

Life360 (ASX:360)

Tech companies are projected to see massive cash flow boosts due to upfront deductions for R&D and bonus depreciation. We could have picked many tech shares here but we chose Life360 (ASX:360) because it first listed in Australia and retains a local listing despite listing in the US too.

Even Aussie tech companies with no exposure to the US could indirectly benefit through improved market sentiment in tech. Some Aussie tech firms have been face near-term pressure from market sentiment and tariff-related anxiety, but R&D tax credits could help.

Austal (ASX:ASB)

Austal is a prominent Australian shipbuilder with substantial U.S. operations—namely in Mobile, Alabama—servicing both the U.S. Navy (including submarine modules) and Australian defence programs. It benefits from a diverse $14 billion+ order book tied to both the U.S. and Australian governments. Importantly, having U.S. facilities shield the company from tariffs, and its contract structures include clauses to offset rising material costs.

OBBB is expected to significantly boost U.S. defence spending. That positions Austal favourably, especially as a contractor with ongoing U.S. naval projects

Pilot Energy (ASX:PGY)

There has been concern that clean energy companies generally may lag in absence of credits that were seen during the Biden administration. Pilot Energy, one of the few ASX companies in Carbon Capture and Storage, may be an exception. We will admit that its benefit may only be indirect given its project is in WA, but the industry needs incentives to get off the ground and good sentiment and this bill may give it that.

The Big Beautiful Bill retains the Section 45Q carbon oxide sequestration tax credit, preserving enhancements introduced by the Inflation Reduction Act. It increases the credit to $85 per ton for point‑source capture and $180 per ton for direct air capture (DAC) with storage, matching earlier IRA levels.

The legislation introduces parity across CCUS pathways: whether captured CO₂ is used in enhanced oil recovery (EOR) or other commercial uses—like producing synthetic fuels or beverages—or permanently stored, it now qualifies for the same maximum credit. Moreover, transferability of the 45Q credit is preserved, and inflation indexing remains in place through 2027.

As a result, CCUS technologies—particularly those involved in EOR or other utilisation routes—receive a clear boost, with more attractive incentives and broader eligibility. While other clean energy sectors (e.g., solar, wind, hydrogen) face accelerated phase‑outs and stricter eligibility rules, CCUS emerges as one of the few technologies that benefits or is preserved under the new law.

Peninsula Energy (ASX:PEN)

We could’ve picked many aspiring developers or miners here, but we picked uranium because this ASX sector needs a boost like the Big Beautiful Bill. While the Australian electorate resoundingly rejected nuclear power at the recent federal election, nuclear is a way of life in America.

Peninsula’s flagship Lance project lies in Wyoming, USA. Lance is one of the largest US uranium projects with 53.7Mlb of JORC Resources. The conservative DFS, completed in August 2022, estimated a 14-year mine life generating 14.4Mlb, deriving a 43% pre-tax IRR, US$895.2 project revenue across the life of the project and a US$124.8m pre-tax NPV. 

While not directly boosting uranium production, OBBBA treats uranium and nuclear materials as strategic assets essential to defence and energy security. The Big Beautiful Bill includes specific provisions to revive and expand a program compensating uranium miners and residents downwind of nuclear testing sites.

Nova Eye Medical (ASX:EYE)

We had to include a health stock here. The healthcare is arguably the one investors are most bearish about under Trump, given many stocks will be vulnerable to tariffs and the Albanese government’s refusal to budge on the Pharmaceutical Benefits Scheme. We could’ve picked CSL because it has operations in the US, but we opted not too given it benefits from the PBS. So we picked Nova.

Nova Eye conducts approximately 70% of its business in the U.S. and recently secured FDA clearance for its iTrack Advance device for glaucoma treatment. As a regulated medical device with strong U.S. market adoption, it benefits from the U.S. healthcare system’s high reimbursement standards, which remain intact under OBBB despite broader cuts.