Labor’s Promises – What Could Change for You?

What the Election Means for Your Hip Pocket + Tax Time Warnings from the ATO

With the federal election behind us and tax time fast approaching, we thought it was a good time to highlight a few important changes and reminders that could affect your business, your family, and your tax return this year.

Whether you’re running cattle in the New England, operating a family-owned café, or managing a medical practice on the Gold Coast, here’s what you need to know.

Labor’s Promises – What Could Change for You?

With Labor securing another term in government, we’re likely to see a few of their headline policies take shape in the months ahead. Here are some key announcements from the budget and the election trail:

Income Tax Cuts Locked In

From 1 July 2026, all taxpayers will receive modest tax cuts. For example:

If your taxable income is between $18,201 and $45,000, your tax rate will drop from 16% to 15% in 2026, and to 14% from July 2027. This could save you up to $536 per year by 2027.

$1,000 ‘Shortcut’ Deduction for Workers

Employees earning wages or salaries will be able to claim a simple $1,000 work-related expense deduction—no receipts needed.

If you usually claim more than that, you can still go down the traditional route.

Note: This won’t apply if your income comes solely from a business or investments (like farming or rental income).

More Energy Rebates for Homes & Small Business

Another $150 rebate will automatically be applied to your electricity bills from 1 July 2025, helping reduce cost-of-living pressure. If you’re running a small business, keep an eye on your bills – these rebates are applied quarterly.

Discounted Home Batteries

Thinking of going solar with storage? From 1 July 2025, you could receive around $4,000 off the cost of an installed battery system through a new scheme.

First Home Buyer Support Expanded

If your kids or employees are thinking of buying their first home, the Government will now guarantee loans with just a 5% deposit – no Lenders Mortgage Insurance (LMI) needed. No more income caps or limited places either.

Superannuation Over $3m – Still on the Agenda

The proposed 30% tax on earnings for super balances over $3 million hasn’t passed yet, but Labor may push it through with Greens support. We’ll keep you posted on developments, particularly for those in high-growth SMSFs or with commercial property inside super.

Small Business Boosts

• Instant Asset Write-Off: Businesses with turnover under $10m can instantly write off eligible assets costing up to $20,000 until 30 June 2026. Thinking of upgrading a ute or buying new tools? Get in touch before committing.

• Small Business Strategy: The Government has also launched a review into how different government agencies interact with small businesses—something we hope leads to simpler systems and fewer headaches!

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Nijo Antony

Director